Xybernaut Reducing Operating Expenses By Twelve to Twenty Million Dollars; Strong Revenue Growth Still Expected
April 01, 2002 08:56:00 AM ET
FAIRFAX, Va.--(BUSINESS WIRE)--April 1, 2002--Xybernaut(R) Corporation XYBR today announced a 15-20 percent workforce reduction as part of a program to reduce expenditures and accelerate profitability.
These actions are expected to result in annualized savings of between $12 and $20 million.
The Company still expects significant revenue growth in the first and coming quarters over the corresponding quarters of the prior year.
"The market for wearable computing and related technologies has advanced dramatically in the past year," said Edward G. Newman, chairman, president and CEO for Xybernaut. "As a result of our leadership position and our years of experience in this market, we now know who the early adopters of this technology are and can target them for near-term revenue growth. This will allow us to scale our business and increase value to stakeholders by generating more rapidly increasing revenues without a corresponding increase in expenses."
Xybernaut expects the majority of the cost savings to be in place by June 2002. The Company also believes this action will also improve its ability to market to and serve its customers and more aggressively pursue its licensing and partnering strategies.
"Xybernaut is focusing its efforts on the most efficient ways to extend and replicate successes that we have already developed with blue-chip enterprise and governmental customers," continued Mr. Newman. "Our objective is to redefine the manner in which businesses and individuals interact with all types of data and information. As highlighted by the actions announced today, Xybernaut is carefully prioritizing expenses with an emphasis on near-term opportunity and return on investment."
The company will focus on further developing its relationships with major accounts such as Bell Canada, FedEx, American Trans Air and others. The Company is also reorganizing its sales and marketing efforts to support the growing community of Team Xybernaut channel partners and resellers. Team Xybernaut has grown three-fold during 2001 and currently includes more than 90 resellers and integrators. These channel partners are bringing wearable computing to various industry segments including utilities/telecommunications, transportation, hospitality, aerospace, military, government, medical, Education, travel/leisure, media/entertainment, law enforcement and security/public safety.
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