ODETICS REPORTS $20M NET LOSS; GYYR’S REVENUES DIP 24%
For the third quarter ended Dec. 31, Odetics Inc. reports a net loss of $20 million, or $1.90 per share, that includes charges totaling $9.4 million related to staffing reductions and reorganization as previously announced on Jan. 4. For the third quarter of fiscal 2001, Odetics’ net sales and contract revenues were $18.9 million. Joel Slutzky, chairman and CEO, says, “The actions taken during the quarter to restructure our business model are intended to lower our break-even level for operating profitability in each of our businesses and return Odetics to positive cash flow operations as quickly as possible.”
The company says it expects to achieve profitability and positive cash flow by reducing its operating expenses, before goodwill amortization, to approximately $11.5 million per quarter, and focusing its efforts on those product families that can sustain an attractive rate of growth and increased gross profit margins. Gyyr Inc., a unit that supplies electronic security products, had revenues of $7.3 million during the quarter, down 24 percent from the third fiscal quarter of 2000. Revenues during the quarter were negatively impacted by reduced unit sales of analog time-lapse products. Odetics’ new business model for Gyyr focuses on its most profitable product lines: access control and data storage systems for the security industry.
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