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NEWTOWN, Pa.--(BUSINESS WIRE)--October 7, 1997--Tseng Labs, Inc. (Nasdaq National Market:TSNG) today announced that it will initiate a corporate restructuring program designed to sustain the Company's operations through the current technology transition period, protect capital resources and improve long-term shareholder value. The key elements of this program are: Staff Reduction
The Company will reduce its staff by approximately 20 - 30%. Included in the staff reduction are primarily non-technical and administrative personnel. The Company will take a one-time charge in the range of $500,000 to $1 million in the fourth quarter of 1997 primarily for related severance and other costs. ET6300 Update
As noted previously by the Company, the ET6300 3D graphics accelerator utilizes MDRAM memory. Recent discussions by the Company with MDRAM manufacturers have raised serious concerns regarding the potential of limited supply and/or lack of price competitiveness of such memory. Accordingly, until these concerns are resolved the Company has not as yet decided whether to complete the commercialization of its ET6300. If the Company elects to move forward with the commercialization of the ET6300, it is anticipated that production deliveries would begin in early 1998. The Company cautioned that if it decides to move forward on this plan, it currently does not expect that profits generated from the sales of the ET6300 will be sufficient to return the Company to profitable operations. Tseng is currently reviewing future product plans and will update its shareholders during the current quarter. Strategic Alternatives
Tseng announced that it has retained Broadview Associates to explore strategic alternatives for the Company. The Company believes it is prudent to evaluate opportunities to enhance its competitive position in the technology marketplace and/or to best utilize its strong balance sheet. In this regard, the Company currently has more than $26 million in cash and no debt. NOTE: All forward looking information are estimates of Tseng Labs, Inc.'s management and are subject to various risks and uncertainties that may influence the Company's development efforts, products and technologies and other risks as detailed from time to time in the Company's SEC reports and filings. Founded in 1983, Tseng Labs, Inc. is a designer and manufacturer of graphics and video processors for personal computers.
Internet users may visit the Company's website at tseng.com
NOTE TO EDITORS: Tseng, ET6000 and ET6300 are trademarks of Tseng Labs, Inc.
(Copyright 1997) |
