DynaVox, a South Side-based speech technology company that has seen sales of its products drop, announced in its third quarter report that it will default on a credit agreement in order to preserve cash on hand.
The company's board of directors voted not to make a voluntary $4 million prepayment on an outstanding debt that would have been due March 29. The company also has classified its $25.2 million in outstanding debt as a current liability and is in negotiations with its lenders.
On April 15, the company's Class A common stock was delisted from the Nasdaq Global Select Market due to noncompliance with the index's $1 minimum bid price requirement. It began trading on the over-the-counter marketplace April 16. On May 21, the company's stock traded at a daily range between 8 and 11 cents.
DynaVox said it plans to file paperwork with the Securities and Exchange Commission at the end of the fiscal year to deregulate its Class A common stock and suspend certain reporting obligations.
The company reported third quarter net losses of $6.6 million, or 58 cents per share, down from losses of $14.1 million, or $1.33 per share, during last year's third quarter.
Net sales dropped almost 40 percent to $14.9 million in the quarter, compared to $24 million during the same quarter a year ago. Sales for the company's speech generating devices decreased 39 percent and sales from DynaVox's special education software declined 28 percent.
The company's third quarter ended March 29.businessnews
Deborah M. Todd: firstname.lastname@example.org or 412-263-1652.