Hi All,
Looks like more good news to improve future earnings. And sowing seeds for Aironet spin-off soon! James and all, comments.
Enjoy,
JK
---------------------
Friday May 30 4:17 PM EDT
Company Press Release
Source: Telxon Corporation
Telxon Announces Plans to Consolidate and Relocate Certain
Development, Support and Manufacturing Operations
AKRON, Ohio, May 30 /PRNewswire/ -- Telxon Corporation (Nasdaq:TLXN) today announced two initiatives to support
its transition to its new business model which focuses on continuous improvements in operations and new product
development.
The first initiative involves the centralization of all Aironet operations into its Akron-based headquarters, including all
product development, manufacturing, customer support, sales and headquarter operations. Roger J. Murphy, Aironet
President and Chief Executive Officer, said, ``We have already initiated the closing of our Toronto, Canada, facility,
notified all affected employees and are in the early stages of expanding our Akron workforce by 30.'' Aironet Wireless
Communications, Inc., a Telxon subsidiary, is a leading designer and manufacturer of wireless LAN products integrating
spread spectrum radio technology.
Telxon has also initiated plans to consolidate and relocate some of its product development, customer support and Telxon
Holdings operations to Houston, Texas, in close proximity to its existing manufacturing and National Service Center
operations. Organizations not affected by this transition will include Telxon's North American Division headquarters,
Finance, Legal, Administration, Logistics Operations and World-Wide Data Center operations.
Frank E. Brick, Telxon President and Chief Executive Officer, said, ``I believe these two centralization initiatives will
significantly contribute to the success of our business model which embraces a new philosophy of continuous
improvements in all areas of our business. We expect further reductions in our overall operating costs, a significant
reduction in our product development time to market and an enhanced ability to support our customers on a world-wide
basis. This new centralized structure will allow Telxon to realize the benefits of concurrent engineering and improve our
ability to integrate worldwide technology and customer support capabilities.''
Kenneth W. Haver, Senior Vice President and Chief Financial Officer, stated, ``We believe that once the two-year
implementation of these initiatives is complete, the efficiency improvements and overall cost reductions that result will
generate approximately $10 million in annual savings. Although transition plans and site selections have not been
completed, these relocations and consolidations are expected to occur over the next 12 to 18 months and reduce current
North American employment by 40. We expect that the transition plans will have no material impact on the company's
targeted operating earnings for fiscal 1998 or our near-term quarterly performance.''
Brick concluded, ``I believe that once this transition is accomplished, Telxon and its customers will benefit from significant
reductions in product development cycle times and support response times to our world-wide customers, both of which
strengthen our position in our fast-moving industry.''
This news release constitutes forward-looking statements that are inherently subject to risks and uncertainties which could
cause Telxon's actual results to differ materially from the forward-looking statements. The important factors affecting the
realization of those results include, without limitation, the company's success in identifying and implementing appropriate
cost reduction, efficiency and other operating improvement strategies, as well as general and industry-specific economic
conditions, the company's ability to timely develop, introduce and gain market acceptance of new and enhanced products,
competitive pressures and rapid technological change, and its ability to identify, acquire and manage new businesses and
technologies. Reference should be made to the discussion of these and other factors affecting Telxon's business and results
as included from time to time in the company's filings with the Securities and Exchange Commission.
Aironet Wireless Communications, Inc. is a leading designer and manufacturer of wireless LAN products integrating spread
spectrum radio technology. Since 1992, Aironet has shipped more than 475,000 wireless LAN products to OEMs and
resellers serving the manufacturing, distribution, retail and healthcare vertical markets. The company is based in Akron,
OH, and is a subsidiary of Telxon Corporation. World Wide Web site: aironet.com.
Telxon Corporation is a leading global designer and manufacturer of wireless and mobile transaction solution systems for
vertical markets. The company integrates advanced mobile computing and wireless data communication technology with a
wide array of peripherals, application-specific software and global customer services for its customers in more than 60
countries around the world. Telxon is headquartered in Akron, Ohio. Telxon International Division is headquartered in
Brussels, Belgium. Telxon's World Wide Web site address is: telxon.com.
SOURCE: Telxon Corporation
Contact: Alex L. Csiszar, Senior Director, Investor Relations, of Telxon Corporation, 330-664-2961 |
