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Alpnet projects a net loss for quarter, faces delisting

SHARE Alpnet projects a net loss for quarter, faces delisting

Salt Lake-based Alpnet Inc. said Thursday that its second-quarter sales will be higher than a year ago but less than management originally expected. It expects a net loss for the quarter, having earlier projected a profit for the period.

The company, a provider of multilingual information management products, said that while sales are expected to improve in the third and fourth quarters, sales in the second quarter would be about $12.6 million. That's up from $11.1 million a year ago.

But the company said difficult economic conditions in the primary markets it serves have resulted in delays of orders and cancellation of some projects mainly from clients in the computer hardware and software industries and in the financial services industry.

Gross margins in the second quarter will be lower than those in the first quarter because of fixed costs associated with what was expected to be increasing sales levels and the costs of certain projects.

The company also said NASDAQ's staff has determined that the company fails to meet the minimum bid price requirement for continued listing on the NASDAQ Small Cap Market. Alpnet has asked for a hearing with the NASDAQ Listing Qualifications Panel.

The company said that if it is delisted from NASDAQ, its stock is eligible to trade on the OTC Bulletin Board.

The company's stock price early Thursday was 59 cents, down 1 cent from Tuesday's close. In the past year, the price has ranged from 31 cents to $3.12.