Lumenon Lays Off
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MONTREAL -- Lumenon Innovative Lightwave Technology, Inc.(NASDAQ: LUMM - message board), citing the protracted downturn in the fiber optic communications market and the current uncertainty with respect to the pace of the recovery, announced today that it will reduce its workforce, through temporary layoffs, by approximately 37 employees.
Gary Moskovitz, Lumenon's President and CEO said, "We believe we have been calculated and methodical in our efforts to transition from a development stage company to one that is able to engage the market. Although we believe we have made significant progress toward commercialization, it is still unclear when the market will begin to recover. Therefore, we feel that the above action is prudent and in the best interest of our shareholders. We expect these layoffs to further reduce our operating expenses in the short term, while we continue to execute our business plan."
The Company expects to incur an additional accounting charge in connection with this layoff, however, the magnitude and timing of the accounting charge will depend upon the duration of the layoff.
Commenting further, Mr. Moskovitz said, "Our focus for fiscal 2003 will be on implementing our growth plan, continuing to mature the technology and the organization, and working towards securing design wins and raising additional capital. We remain confident in our growth opportunities and believe our business strategy, in conjunction with our fiscal management efforts, position us to compete effectively."
Lumenon Innovative Lightwave Technology Inc. |
