Covansys Receives Staff Determination Letter From Nasdaq.Business Editors/High-Tech Writers FARMINGTON HILLS Far·ming·ton Hills A city of southeast Michigan, an industrial suburb of Detroit. Population: 81,400. , Mich.--(BUSINESS WIRE)--May 27, 2004 Company Will Appeal Determination and is Working to Complete Its Review and Analysis of Accounting Issues Regarding Certain Property and Equipment Covansys Corporation This article or section needs sources or references that appear in reliable, third-party publications. Alone, primary sources and sources affiliated with the subject of this article are not sufficient for an accurate encyclopedia article. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : CVNS CVNS Concert Virtual Network Service CVNS Aircraft Carrier Navigation System CVNS Cardiovascular Neurological Services CVNS Continuous-Valued Number System ), a leading global provider of strategic outsourcing and integration services, today acknowledged the receipt of a Nasdaq Staff Determination letter dated May 26, 2004, notifying the Company that it has not complied with Marketplace Rule 4310(c)(14) requiring the timely filing of its Form 10-Q Form 10-Q See 10-Q. for the period ended March 31, 2004 with the Securities and Exchange Commission ("SEC"). As a result, the Nasdaq Staff has indicated that the Company's ticker symbol Ticker Symbol An arrangement of characters (usually letters) representing a particular security listed on an exchange or otherwise traded publicly. When a company issues securities to the public marketplace, it selects an available ticker symbol for its securities which investors will be changed from CVNS to CVNSE at the open of business on May 28, 2004. Further, the Company has been put on notice that its securities will be delisted from the Nasdaq Stock Market Nasdaq stock market The first electronic stock market listing over 5000 companies. The Nasdaq stock market comprises two separate markets, namely the Nasdaq National Market, which trades large, active securities and the Nasdaq Smallcap Market that trades emerging growth companies. at the open of business on June 4th unless the Company appeals the Staff's determination at a hearing before a Nasdaq Listing Qualification Panel. Covansys intends appeal the Staff's determination at such a hearing. As a result of this appeal, the Company's securities will continue to be listed pending the Panel's final determination. There can be no assurance that the Panel will grant the Company's request for continued listing. The delay in filing the Company's Form 10-Q for the period ended March 31, 2004 is the result of a recently completed physical inventory of its fixed assets fixed assets npl → activo sg fijo fixed assets npl → immobilisations fpl fixed assets fix npl → . Covansys is working to resolve issues surrounding the proper accounting treatment for physical losses and obsolescence ob·so·les·cent adj. 1. Being in the process of passing out of use or usefulness; becoming obsolete. 2. Biology Gradually disappearing; imperfectly or only slightly developed. of certain of the Company's property and equipment, mainly computers and related peripherals previously reported as having a current net book value of approximately $2.5 million (an original cost of $15.7 million), or less than 1% of total assets. On May 17, 2004, Covansys released selected first quarter operating results and announced the delay in filing its Form 10-Q for the period ended March 31, 2004. The Company intends to file its Form 10-Q as soon as possible following final resolution of these issues, thereby allowing it to return to compliance with Nasdaq filing requirements. About Covansys Covansys Corporation, (NASDAQ: CVNS), is a global consulting and technology services company specializing in industry-specific solutions, strategic outsourcing and integration services through a unique onsite, off-site, offshore delivery model that helps clients achieve rapid deployment, world-class quality and reduced costs. Founded in 1985, Covansys has successfully delivered an array of innovative and cost-effective business and technical solutions to leaders in the private and public sectors. With one of the largest offshore capabilities of any technology services provider based in the United States, Covansys has achieved the SEI's CMM (Capability Maturity Model) A process developed by SEI in 1986 to help improve, over time, the application of an organization's supporting software technologies. (R) Level 5 quality ratings at two of its offshore development centers in India. Safe Harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. Statement With the exception of statements regarding historical matters and statements concerning our current status, certain matters discussed herein are forward-looking statements that involve substantial risks and uncertainties. Such forward-looking statements may be identified by the words "anticipate," "believe," "estimate," "expect" or "intend" and similar expressions. Our actual results, performance or achievements could differ materially from these forward-looking statements. Factors that could cause or contribute to such material differences include general economic conditions and conditions in the IT industry such as the demand for IT services, public sector government budgetary constraints, potential cost overruns on fixed-price projects, effective application of the percentage of completion method of accounting for fixed priced contracts, risks related to merger, acquisition and strategic investment strategy, variability of operating results, government regulation of immigration immigration, entrance of a person (an alien) into a new country for the purpose of establishing permanent residence. Motives for immigration, like those for migration generally, are often economic, although religious or political factors may be very important. , exposure to regulatory, political and economic conditions in India and Asia, competition in the IT services industry, the short-term nature and termination provisions of contracts, economic conditions unique to clients in specific industries and limited protection of intellectual property rights. These and other factors are described in the Company's filings with the U.S. Securities and Exchange Commission. |
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