Concord Camera Could be Delisted on NASDAQ

The Company received a notice from the Nasdaq Listing Qualifications staff telling them they could be delisted from NASDAQ if they do not file the proper forms.

From the press release:

The Nasdaq Stock Market had not received Concord’s Form 10-Q for the third quarter of Fiscal 2005 which ended April 2, 2005 (”Third Quarter 10-Q”) and because the Company did not expect to file the Third Quarter 10-Q on or before May 17, 2005 as permitted by Rule 12b-25, the Company’s securities are subject to delisting from the Nasdaq Stock Market at the opening of business on May 24, 2005 unless Concord requests a hearing in accordance with Nasdaq’s Marketplace Rule 4800 Series. In addition, as a result of Concord’s filing delinquency, a fifth character, “E”, will be appended to its trading symbol; accordingly, Concord’s trading symbol will be changed from LENS to LENSE at the opening of business on May 17, 2005.

As previously disclosed, the planning and implementation of the Company’s Enterprise Resource Planning System (”ERP System”) resulted in a material weakness in the Company’s internal controls over financial reporting and inefficiencies and delays in providing information necessary to complete the Company’s Quarterly Reports on Form 10-Q for the First Quarter and the Second Quarter of Fiscal 2005. The Company believes it has made progress in operating the new ERP System, but continues to experience material weaknesses with regard to the ERP System and the financial statement closing process generally, which problems were exacerbated by the migration of the operations of the Jenimage Europe GmbH business, which was acquired by the Company during the Fourth Quarter of Fiscal 2004, onto the ERP system during Third Quarter Fiscal 2005. The Company plans to file its Third Quarter 10-Q as soon as practicable, but does not currently expect that it will be filed on or before May 17, 2005, as prescribed in Rule 12b-25.

The Company plans to appeal the staff’s determination and request a hearing by a Nasdaq Listing Qualifications Panel pursuant to the procedures set forth in the Nasdaq Marketplace Rules 4800 Series. The Company’s securities will remain listed pending the result of such appeal.