SR Telecom Inc. has launched a restructuring initiative that it says will significantly reduce operating expenses.
April 30, 2004
SR Telecom Inc. has launched a restructuring initiative that it says will significantly reduce operating expenses. The move impacts sales, research and development, manufacturing and support staff.
“We are taking actions to rationalize our operations in order to return the company to profitability,” said Pierre St-Arnaud, SR Telecom’s president and CEO
“We are confident that we will see a significant increase in our revenues in the second half of 2004, and we remain committed to generating positive net income by the fourth quarter.”
Highlights of the streamlining plan include the closing of Redmond, Wash. facility, concentrating R&D activities in Montreal, and focusing SR Telecom’s operations in France on sales and customer support.
A restructuring plan is currently being finalized with the workers’ council in France.
The key resources and technology currently located in Redmond will be transferred to Montreal.
“By concentrating our R&D efforts in Montreal, we will be able to focus more efficiently on the continuing development of our angel and airstar products, St-Arnaud said.
The restructuring charges associated with the plan will be recognized as they occur in the second and third quarters of fiscal 2004.
Further details about the restructuring plan will be made available when the Company issues its first quarter results on May 12.
The company develops Broadband Fixed Wireless Access (BFWA) technology, which links end-users to networks using wireless transmissions.