Bell Micro Aims For Nasdaq Relisting

The company was delisted in March 2008 due to investigations of its stock option and accounting practices that lasted more than three years.

Traditionally, companies can be relisted on Nasdaq when their stock hits $1 per share, but that needs to happen within a year, otherwise the company is treated as a new stock and the $4 minimum, according to Bell.

"We know we're paying a penalty for not being listed and everything we've gone through the last three years," Bell told investors at the Raymond James IT Supply Chain Conference in New York Tuesday.

Bell Micro has successfully completed the first of two levels of analysis by Nasdaq to be relisted. The second level requires the company to be trading near the $4 mark first, Bell said. "The second is really someone who looks at the first [analysis] to make sure it was done correctly," he said.

If Bell Micro shares do not reach $4 by the end of the month, the company may look at other options, including a reverse stock split, to hit the market and be relisted on Nasdaq, Bell said.

"That requires a shareholder vote. It takes a month or so to get ready for that, then another three weeks or month waiting period for the shareholder vote," Bell said. "We don't have any activities underway to do that, but after the first of the year we'll make an assessment."

Bell noted that business turned the corner in the third quarter, a trend that's continued into 4Q. "The U.S. has been strong in the distribution side and the reseller business. Both were lower in Q1 and Q2. Q3 increased substantially and Q4 looks like it will be up again.," Bell said. "With margins improving and expenses coming down, think we have a good opportunity going forward," he said.

At last year's Raymond James conference, the mood was much more dour, Bell noted.

"What a difference a year makes, right? Last year we were headed down, down, down. We thought we might see the bottom, but we hadn't yet," he said. "If our current run rate holds up, we see [revenue] up 4 to 7 percent from last year and we see reasonable growth for 2010."

Bell Micro reported about $3.6 billion in sales last year and expects about $3 billion this year, Bell said.