Pyrosequencing Shifts Emphasis Toward Near-Term Profitability; Company Reduces Operating Expenses by Approximately $7 Million on Annual Basis
Thursday October 10, 8:54 am ET
UPPSALA, Sweden, Oct. 10, 2002 (PRIMEZONE) -- Pyrosequencing AB (Stockholm:PYROA) (Other OTC:PYRSF.PK - News) today announced that in conjunction with a program aimed to accelerate the route to profitability, it has given notice regarding 23 people at the Company's headquarters in Uppsala, Sweden and initiated negotiations in accordance with the Codetermination Act. The program, which reflects the general slow down in the economy, is expected to decrease the cash expenses by approximately $7 million on an annual basis beginning in 2003. Pyrosequencing anticipates that the Company will accrue approximately $700,000 in the third quarter related to these reductions.
Over the past three years, Pyrosequencing has introduced a portfolio of products that includes the PSQ(TM)96, the PSQ(TM)96MA, and the PSQ(TM)HS 96A Systems as well as a customized high-throughput system (PTP(TM)), various software upgrade packages and new sample preparation tools. Pyrosequencing now transitions from this initial product development and introduction phase, and will increase its focus on near-term profitability. The cost-reduction program, announced in the interim report on August 8, is now being extended to include the reductions of operating expenses and personnel in administration, product development and central marketing at the head office in Uppsala, Sweden. At present the Company employs 145 people globally, with 110 in Uppsala.
``We are now ready to move into the next phase of the Company's development. We will continue to bring a high level of innovation to the Life Sciences research market but also to expand our efforts in the clinical applications of our technology, where we continue to experience strong interest from the market,'' said Erik Wallden, President and CEO of Pyrosequencing AB. ``The Company is now focused very strongly on reaching profitability. As one of many measures to decrease costs, we have reduced the headcount in the Uppsala office. We regret the impact that this will have on our employees but we have to create a vigorous and sustainable company,'' he added. |
