TeamStaff board authorizes reverse stock split to meet Nasdaq listing minimum

Medical staffing agency TeamStaff Inc. (NASDAQ: TSTF) is in the process of restructuring both its finances and its business model in order to return the company to operating profitability and push its stock price above the minimum $1 per share for continued listing on Nasdaq. Currently, TeamStaff's board of directors has authorized a reverse stock split as part of the company's response to a Nasdaq Staff Determination letter indicating TeamStaff was in violation of the $1.00 per share minimum for Nasdaq listing. The company has sold its DSI PayrollServices unit and is exiting the nursing per diem business segment. Instead, TeamStaff will supply contract medical staffing needs for the Department of Veterans Affairs and Department of Defense health care facilities.

The company posted $400,000 in income for 4Q 2007 and returned to profitability, barely, for the quarter. For FY2007, however, gross profits were flat. The good news is that losses from continuing operations are much smaller for FY2007, $3.4 million or ($0.17) per share, in contrast to FY2006 losses of $18.5 million of ($0.96) per share. TeamStaff recently appointed Cheryl Presuto as CFO and hopes to return to sustained operating profitability in 2008.