Fluidigm (FLDM -7%) adopts, subject to shareholder approval, a Tax Benefit Preservation Plan aimed at preserving the long-term tax benefits of its $321.4M in net operating loss carryforwards. It says a change in ownership, defined as an owner of more than 5% of the company's common stock who increases his/her ownership percentage by more than 50% during a rolling three-year period (U.S. tax rules), could limit the company's use of the carryforwards.
In connection with the Plan, the board has declared a non-taxable dividend of one preferred share purchase right for each common share owned by shareholders of record on December 1. The rights will be triggered if an unwanted suitor or investor acquires at least 4.99% of the company's common shares.
The purchase rights will expire on November 21, 2019 unless extended and earlier under certain conditions.
Thinly traded micro cap Fluidigm (NASDAQ:FLDM) slumps 22% premarket on average volume after it announced that preliminary Q3 revenues will be $22.2M, down almost 23% from a year ago and 24% shy of consensus.
Fluidigm (NASDAQ:FLDM): expects Q3 Revenue of $22.2M (-22.5% Y/Y) vs. a consensus of $29.25M and suspending FY16 guidance.
CEO Gajus Worthington “We are exceedingly disappointed that our third quarter financial results did not meet our expectations. Although lower-than-expected sales of Helios systems contributed a significant portion of the overall shortfall, we have already seen a number of those anticipated sales close or progress in the fourth quarter, We are addressing the underlying issues impacting our performance, and continue to take actions to improve our business and return to growth”