Most of the reason the stock got so low was a mix between panic and fear of delisting.
Once that the fear is all gone (i.e. hits >$1), I think the stock should quickly jump back to the $2-$3 range (~1-2x sales) where I think should be valued. This company has more cash on hand than its market cap!
I have owned since the DIMD and SIII days, and have never given up hope, since I know the companies products and quality. I already owned, but still loaded up big time once the stock fell below $2.
If the company's price does remains this low for much longer (unlikely IMO), I would expect it to be an ideal acquisition target (due to its product mix, cash position, undervalued nature) for an electronics company like SONY, Samsung, Thompson, etc.
Toshiba has already shown its interest in the technology by its linkup with Tivo.