Cushman’s Stock Taken Off NASDAQ System

Cushman Electronics, a Newport Beach manufacturer of cellular communications equipment, said its stock has been removed from the computerized over-the-counter stock exchange because it failed to meet financial requirements.

As a result of the delisting from the National Assn. of Securities Dealers Automated Quotation (NASDAQ) system, Cushman will probably halt the registration of its common stock to cut expenses, Vice Chairman Mark K. Howlett said Wednesday.

Federal securities regulations permit companies with fewer than 500 stockholders and assets not exceeding $5 million during the last 3 years to withdraw their stock from public trading. Cushman meets both guidelines, Howlett said.

Cushman could achieve significant savings on legal and accounting costs by no longer filing the quarterly and annual financial reports required of public companies, Howlett said.

“When companies are downsizing, it’s an awful burden to have all these costs,” he said.

Effective Wednesday, Cushman became a “pink sheet” stock--traded only by securities firms willing to find buyers and sellers for the shares. Daily price quotations will no longer be provided on the NASDAQ system.

According to Howlett, Cushman stock traded Wednesday within a range of 62.5 cents and $1 per share.

Cushman reported earnings of $378,000 for the fiscal year ended Sept. 30. It had a loss of $2 million the previous year. Sales fell 31%, to $4.7 million.

In October, 1987, Cushman announced a restructuring that included closing a San Jose production facility and discontinuing several unprofitable product lines, including monitors and maintenance instruments for two-way radios.

As of Sept. 30, Cushman’s shareholders equity was $256,000, which did not meet the NASDAQ minimum requirement of $375,000.