Brookfield-based Connecture Inc. is on the verge of being delisted from The Nasdaq Stock Market.
The health insurance marketplace software developer on May 4 received a deficiency notice from Nasdaq indicating it has not met the required $15 million minimum market value of publicly held shares for the past 30 consecutive business days.
Per Nasdaq rules, Connecture has until Oct. 31 to bring its market value into compliance with this rule, or its stock will be delisted. Connecture shares today were trading at 84 cents per share, which would put it at a $17.7 million market capitalization.
The company Monday afternoon reported its first quarter results. Connecture reported a net loss of $3.7 million, or 22 cents lost per share, compared with a net loss of $7.3 million, or 33 cents lost per share, in the first quarter of 2016.
Connecture’s operating loss was $2.7 million in the first quarter, down from $5.9 million in the first quarter of 2016. The company reduced its operating expenses and cost of revenue in the quarter.
Revenue was $18.3 million, up from $17.6 million in the same quarter a year ago.
“The first quarter of 2017 was a strong start to the new year,” said Jeff Surges, president and chief executive officer of Connecture. “I am extremely pleased with our progress in multiple areas. First, our go-to-market strategy and initiatives combined with our new sales teams are delivering traction in the marketplace. We had another solid bookings quarter as evidenced by the growth in our contracted backlog and our pipeline since the start of the year. Next, all of our scheduled renewals occurred as planned, a positive confirmation of the value we are delivering to our clients. On the operations and cost side, we executed ahead of plan in the quarter and continue to implement efficiency initiatives to further improve our performance. Overall, our year-over-year financial results reflect our progress on all fronts, and we are encouraged by the start to the new year.”
Connecture has received two recent influxes of cash from investors. Last May, Connecture received a $52 million equity investment from San Francisco-based Francisco Partners and Chrysalis Ventures, and in March, Francisco Partners led a round to put in another $17.5 million.
