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Beyond.com delisting seen
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August 16, 2000: 12:10 p.m. ET
Nasdaq gives computer e-tailer 30 days to lift shares to $5 from under $1
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NEW YORK (CNNfn) - Computer e-tailer Beyond.com confirmed Wednesday it has been warned by the National Association of Securities Dealers that it is in danger of being de-listed from the Nasdaq market.
In a filing Tuesday with the U.S. Securities and Exchange Commission, the Santa Clara, Calif.-based company, whose stock has fallen below $1, said the NASD informed the company in a letter that it had 30 days to bring its stock over $5, the minimum bid requirement for listing on the Nasdaq, by Sept. 12, or it will be delisted.
 The company also filed a notice of exchange with the SEC for its convertible notes as a corrective measure, a company spokeswoman said Wednesday.
The company is exchanging its 7-1/4% convertible subordinated notes due Dec.1, 2003 for 10-7/8% notes. Curtis Cluff, the company's chief financial officer, said he is confident most stockholders will be willing to convert the notes. If successful, the move will boost Beyond's tangible assets over the $4 million mark, saving it from de-listing.
"We think that's an attractive offer," Cluff said. "We think there's a high likelihood that a majority, if not all, of our stockholders will exchange and that will generate an extraordinary net gain."
Last year, Beyond.com, which had $117.3 million sales in 1999 but has seen sales decline since then, decided to refocus its business from consumer retail to business-to-business e-commerce services.
Like many other dot.com companies, Beyond.com struggled in the wake of selling computers at razor-thin margins and Wall Street's increasing disillusionment with e-tailing stocks.
The company's net losses have increased from $5.5 million in 1997 to $124.8 million in 1999. It had a net loss for the first half of 2000 of $66.1 million.
Although it still sells computers and computer equipment on its Web site, the company now focuses on Web site management for other e-tailers as well as providing digitally downloadable software to U.S. government agencies.
The company took a $13.7 million charge in the first-quarter of 2000 related to laying off 20 percent of its workforce, consolidation and termination of various sale agreements.
But Beyond.com officials remain hopeful that by repositioning itself as a b-to-b company, it ultimately will turn itself around and revive shareholder value.
Shares of Beyond.com (BYND: Research, Estimates) traded up 3/32 to 7/8 Wednesday. 
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