ODETICS REORGANIZES, CUTS 25% OF ITS TOTAL STAFFING LEVELS
Odetics Inc. announces that it is reorganizing its business to reduce its operating expenses and negative cash flow. “Implicit in the successful execution of the incubator model is continued access to private and public equity capital to finance the growth of Odetics’ businesses,” says Joel Slutzky, chairman and CEO. “Given the conditions in the equity capital markets, we have found it increasingly difficult to complete some of our planned transactions.”
The company says the reorganization, which includes staffing reductions and the planned divestiture or shutdown of certain business activities, is intended to reduce Odetics’ overall expense structure and further focus Odetics’ business development to those areas that provide the opportunity for the highest return on shareholder capital. “Our number one objective,” adds Slutzky, “is to enhance our ability to develop our Mariner Networks, Zyfer and Iteris businesses.”
Key measures involved in the reorganization include: 1) Broadcast Inc. has downsized its operations to focus on software content management and delivery systems; 2) Gyyr Inc. is downsizing its operations to focus on data storage, where it has strong market share and brand recognition, and access control systems, where it has profitable operations. In addition, Odetics is reducing its workforce by approximately 25 percent of its total staffing levels.
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