Datapoint Corp, the videoconferencing software house, announced on Friday that it will lose its listing on New York Stock Exchange on August 24, driving the already depressed shares to below a dollar. The Texan company issued a statement insisting that the move was an administrative event which did not reflect any material change in Datapoint’s financial health. But the company’s shares have been declining steeply since March and the financial results from the company’s last quarter through May 2 showed growing losses from declining revenues. The company held nearly $9m in cash at the quarter end, but cash flowing out the door from operating activities in the period ran to more than half this balance at $4.9m. Datapoint also has substantial long term debts to maintain. In a statement announcing its impending removal from the NYSE, Datapoint said it had also asked the exchange to investigate some unusually heavy selling of Datapoint’s shares earlier in the week. The company wants an investigation launched into whether the news was leaked to certain investors prior to the public announcement. Datapoint has become heavily involved in wide ranging litigation against the majority of the videoconferencing industry, claiming that rival companies have infringed its patents. But to date, it has been unsuccessful in enforcing these claims. The company said it was reviewing alternative venues for listing its shares.
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