The company faces possible delisting after its stock stays in the doldrums for more than 30 days.
Despite a booming market for paid search, LookSmart's stock has lingered below the $1 mark for more than 30 days, prompting Nasdaq to warn the company of possible delisting.
To continue to be listed on the exchange, LookSmart's shares must trade above $1 for at least 10 of the next 180 days. The bad news comes as other players in search, such as Google and Yahoo, report strong growth.
Potential remedies for LookSmart include a reverse stock split and a move to the Nasdaq Small Cap Market.
Despite a boom in paid search ad spending, LookSmart has never quite recovered from losing MSN as a distribution partner back in October 2003.
More recently, the company said it failed to pursue the types of advertisers it would need to capitalize on search volume. That disappointing news followed the appointment of a new CEO and a management shakeup -- changes aimed at reversing the company's fortunes.
Revolutionize your digital marketing campaigns at ClickZ Live San Francisco (August 10-12)!
Educating marketers for over 15 years, our action-packed, educationally-focused agenda offers 9 tracks to cover every aspect of digital marketing. Join over 500 digital marketers and expert speakers from leading brands. Register today!
Pamela Parker is a former managing editor of ClickZ News, Features, and Experts. She's been covering interactive advertising and marketing since the boom days of 1999, chronicling the dot-com crash and the subsequent rise of the medium. Before working at ClickZ, Parker was associate editor at @NY, a pioneering Web site and e-mail newsletter covering New York new media start-ups. Parker received a master's degree in journalism, with a concentration in new media, from Columbia University's Graduate School of Journalism.
US Consumer Device Preference Report
Traditionally desktops have shown to convert better than mobile devices however, 2015 might be a tipping point for mobile conversions! Download this report to find why mobile users are more important then ever.
E-Commerce Customer Lifecycle
Have you ever wondered what factors influence online spending or why shoppers abandon their cart? This data-rich infogram offers actionable insight into creating a more seamless online shopping experience across the multiple devices consumers are using.