Wizcom Technologies Ltd. / / Ad hoc: Wizcom Takes Further Measures to Reduce Operating Costs . Processed and transmitted by Thomson Reuters ONE. The issuer is solely responsible for the content of this announcement.
Rosh Ha'ayin, January 19th, 2012 - Wizcom Technologies Ltd. (Prime Standard: WZM, IL 0010830706) announces today that the Company's Management has decided to close the R&D department and lay off its entire development team. The measure is taken in order further to reduce operating costs by approximately US$ 500,000 per year.
As a consequence, Wizcom will not be able to realize the launch of its new product generation around the middle of 2012. Management explains the action taken by the need to balance costs with the very significant reduction in revenues in Q4 2011 and the Company's limited ability to raise additional funds.
By discontinuing R&D efforts, running costs of Wizcom (excluding Galil and Wizcom Inc) will be reduced to less than US$ 180,000, in order to reach balance with the proceeds from the current sales of reading pens and to reach break even.
In addition, the Management is striving to reach an agreement with its major debt holders in order to secure ongoing operations. The Company has current liabilities through its outstanding bonds and to suppliers, in excess of US$ 2 million. Achieving a positive cash flow through further cost reductions is condition precedent for such an agreement.
--- End of Message ---
Wizcom Technologies Ltd.
13 Hamelacha St. Rosh Ha'ayin Israel
WKN: 915856;ISIN: IL0010830706;Index:Prime All Share,TECH All Share;
Listed: Freiverkehr in Börse Stuttgart,
Freiverkehr in Börse Berlin,
Freiverkehr in Börse Düsseldorf,
Freiverkehr in Bayerische Börse München,
Prime Standard in Frankfurter Wertpapierbörse,
Regulierter Markt in Frankfurter Wertpapierbörse;
Hinweis: ARIVA.DE veröffentlicht in dieser Rubrik Analysen, Kolumnen und Nachrichten aus verschiedenen Quellen. Die ARIVA.DE AG ist nicht verantwortlich für Inhalte, die erkennbar von Dritten in den „News“-Bereich dieser Webseite eingestellt worden sind, und macht sich diese nicht zu Eigen. Diese Inhalte sind insbesondere durch eine entsprechende „von“-Kennzeichnung unterhalb der Artikelüberschrift und/oder durch den Link „Um den vollständigen Artikel zu lesen, klicken Sie bitte hier.“ erkennbar; verantwortlich für diese Inhalte ist allein der genannte Dritte.