Sensormatic Electronics Corp. announces net income for its third quarter ended March 31 was $8.5 million, or 7 cents earnings per diluted common share (EPS), compared with net income in 2000, less restructuring reversals and litigation recoveries, of $13.4 million, or 14 cents per diluted common share.
Revenue for the quarter was $257 million, a 1-percent increase, excluding the effects of foreign currency, and a 2-percent decrease on a reported basis, compared to the prior year period. Company officials believe the difficult economic environment was a major factor contributing to its reduced revenue and EPS and that cost-cutting, revenue generation and organizational efficiency measures will help it meet its financial expectations.
Sensormatic also plans to reduce its workforce by 450 employees in North America and Latin America by June 30. In addition, it has begun the consultation process within Europe, the Middle East, Africa and the Asia-Pacific region to identify cost-cutting measures there. These and related cost reductions are expected to result in savings of at least $35 million annually.
The company plans to streamline its structure by reducing management and administrative support. There will be virtually no impact in the sales, direct customer service and engineering areas.
Sensormatic is a supplier of electronic security solutions.
