Sparton Requests a Review of Non-Compliance Determination from the NYSE
(JACKSON, MICHIGAN) - November 25, 2008 - Sparton Corporation (NYSE: SPA) ("Sparton" and "Company") today announced it requested a review of the determination by NYSE Regulation Inc. ("NYSE Regulation") that the common stock of Sparton should be removed from the list for failure to comply with the NYSE's continued listing standards.
The Company received NYSE Regulation's notice of non-compliance on November 6, 2008. Sparton has submitted a request for a review of the determination to a Committee of the Board of Directors of NYSE Regulation. In accordance with NYSE Regulation, a review will be scheduled for the first Review Day which is at least 25 business days from the date the request for review is filed with NYSE Regulation. Sparton has been told to expect the Review Day for sometime in early February, and NYSE Regulation has advised the Company that the Company's stock will continue to trade on the NYSE during the appeals process, subject to ongoing monitoring. NYSE Regulation noted, however, that it may, at any time, suspend a security if it believes that continued dealings in the security on the NYSE are not advisable.
The decision to suspend the Company's common stock was reached in view of the fact that the Company had recently fallen below the New York Stock Exchange's ("NYSE") continued listing standard regarding average global market capitalization over a consecutive 30 day trading period of not less than $25 million, which is the minimum threshold for listing. The Company had previously fallen below the NYSE's continued listing standards for average global market capitalization over a consecutive 30 trading day period of not less than $75 million and total stockholders’ equity of not less than $75 million, and was in the process of submitting a business plan for review. This latter issue has been deferred pending the outcome of the current appeal.
During this process, Sparton will complete a review of available alternatives for Sparton shareholders to have access to appropriate trading mechanisms for their common stock.
Sparton is hopeful that in their review, NYSE Regulation will view positively the recently announced changes. On November 12, 2008, the Sparton Board of Directors elected David P. Molfenter, former Lead Independent Director, as Chairman of the Board for the ensuing year. In addition, effective November 24, 2008, Cary B. Wood was appointed the new Chief Executive Officer for Sparton Corporation. These changes support Sparton's continued commitment toward improving its operations and financial condition.
About Sparton Corporation
Sparton Corporation (NYSE:SPA) now in its 108th year, is a broad-based provider of electronics to technology-driven companies in diverse markets. The Company provides its customers with sophisticated electronic and electromechanical products through prime contracts and through contract design and manufacturing services. Headquartered in Jackson, Michigan, Sparton has six manufacturing locations world-wide. The Company's Web site may be accessed at http://www.sparton.com.
Safe Harbor and Fair Disclosure Statement
Safe Harbor statement under the Private Securities Litigation Reform Act of 1995: To the extent any statements made in this release contain information that is not historical, these statements are essentially forward-looking and are subject to risks and uncertainties, including the difficulty of predicting future results, the regulatory environment, fluctuations in operating results and other risks detailed from time to time in the Company's filings with the Securities and Exchange Commission (SEC). The matters discussed in this press release may also involve risks and uncertainties concerning Sparton's services described in Sparton's filings with the SEC. In particular, see the risk factors described in the Company's most recent Form 10K and Form 10Q. Sparton assumes no obligation to update the forward-looking information contained in this press release.