Datalex to de-list from NASDAQ as woes continue

Troubled technology solutions firm Datalex has announced is to voluntarily de-list from US stock market the NASDAQ and senior management changes will also see executive chairman Neil Wilson step down.

The company has requested that it be delisted from the NASDAQ with effect from the close of business on April 25. On the same date it will convert its secondary listing on the Irish Stock Exchange to a primary listing.

Datalex claimed that its decision was due to the fact that most of its shareholders are based in Ireland and the UK. However the company’s share price on the NASDAQ has plummeted from a high of $11.68 in October 2000 to just $0.65 on Monday. Datalex has been badly hit by the economic downturn, a situation made worse by the September 11 terrorist attacks. Its total revenues during the last three months of 2001 were down by 49% compared to the same period a year earlier.

Datalex chief executive Neil Beck said: “Almost 100% of Datalex institutional shareholders and more than 95% of private shareholders are based in Ireland and the United Kingdom. The company has therefore decided that it is no longer appropriate to maintain a primary listing on the NASDAQ national market. Accordingly, we will be voluntarily de-listing our ADRs from that market and will be moving to an OTC listing. In addition, there will be considerable savings to the Company both financially and in terms of the resources required to maintain a separate US listing.”

Mr Beck added: “North America continues to account for a significant proportion of our customer base and a substantial amount of our revenues. That market will still be a key focus for us from a sales and business development perspective. We have been encouraged by the strong signs of economic recovery in the United States and have seen significant customer interest and activity in recent months.”

Datalex has also announced that the company’s founder and largest individual shareholder Neil Wilson is to step down from his role as executive chairman. He will be replaced as chairman by former ICC Bank chief executive Michael Quinn as part of the company’s plans to have a primarily non-executive board. As part of the same aim, Paul Addy and James Peters, part of the Datalex executive team, will resign as executive members of the Board.

Mr Wilson will lead a ‘sales task force’ looking at ways “to maximise Datalex’s response to a recovering economy.” Reporting to Mr Wilson, who keeps his seat on the board, will be Senior Vice President – Commercial, Damian Hickey, Vice President Business Development Justin Morshead and Chief Technology Officer James Peters.

Mr Morshead will retire from the company in June. He has been with the company since 1999 when Datalex bought Teamwork Solutions, the company he co-founded. Datalex said he will continue to work with the company on a “part time basis.”

Mr Beck concluded: “Datalex has certainly felt the effects of the economic downturn and the events of September 11th. As we see early signs of recovery, it is important that we begin to make the changes necessary to maximise the opportunities of the marketplace.”

See our previous stories:

12 Mar 2002: Datalex increases Yatra stake to 100%

20 Feb 2002: Datalex Q4 results hit by September 11 effect