Irvine’s Interplay Disputes Nasdaq Stock Warning

The National Assn. of Securities Dealers has notified Irvine computer game maker Interplay Entertainment Corp. that it does not meet certain criteria to maintain future listing on the Nasdaq national market system.

The software publisher disputes the decision and says it will appeal the NASD’s notice at a hearing June 22. The news does not mean the financially troubled company’s stock will be delisted, analysts said.

Interplay recently reported a net loss of $5.5 million in the first quarter, down from an $8.3-million loss in the same period a year earlier. Revenue in the quarter fell 16% to $18.1 million.

Though the company has a slew of popular titles on store shelves, Interplay is caught by an industry-wide slump as consumers await the debut of new video players.

Pending the outcome of the NASD hearing, Interplay’s common stock will continue to trade on the exchange, Interplay officials said. The stock rose 9 cents to close Friday at $2.13 a share.

Founded in 1983, Interplay is known for its outrageous promotions and titles, like Starfleet Academy, a Star Trek-themed game, and Carmageddon, a 1997 release in which players careen off roads to hit pedestrians and farm animals.