BUFFALO GROVE, Ill.-Telular Corp. announced it has planned a major restructuring program. The company said it will consolidate its manufacturing and engineering by transferring production from its Puerto Rico and Illinois manufacturing facilities to its Atlanta facility, substantially reducing fixed manufacturing costs.
Telular said the restructuring plan will result in reduced general and administrative expenses companywide.
“Our continued difficulty in predicting demand from the immature marketplaces served by our products underscores the importance of reducing fixed costs and properly aligning expenses to attainable levels of revenue,” said William De Nicolo, Telular’s chairman and chief executive officer. “Our immediate focus is clearly on restructuring for profitability and the ongoing development of the market-driven products needed to reach our long-term goal of product and technological dominance in the worldwide fixed wireless and domestic PCS [personal communications services] markets.”
Telular said its staff will be reduced from 250 to about 150 by the end of the third fiscal quarter. Preliminary estimates for restructuring charges anticipated for the second fiscal quarter range from $7 million to $9 million, consisting primarily of non-cash write-offs of goodwill, inventories and leasehold improvements, Telular said.
