Business
Sirit Takes Actions to Align with Current Market Outlook
Sirit Takes Actions to Align with Current Market Outlook.
About this update from Torq Resources Inc.
[{"type":"text","content":"\n\n\n\n\nCompany remains focused on core technology offerings and key markets\n\nTORONTO, Oct. 19 /CNW/ - Sirit Inc. (TSX: SI), a leading provider of\nradio frequency identification (RFID) technology, announced today that with\nthe goal of being cash flow neutral in the fourth quarter of fiscal 2007, the\nCompany has undertaken action to align its organizational structure with\nexpected revenue levels and market opportunities.\n\"Earlier this year, the Company indicated that we anticipated higher cash\nburn over a couple of quarters while we integrated two acquired operations and\ncompleted development of certain key products,\" said Norbert Dawalibi,\nPresident and CEO, Sirit Inc. \"With Sirit's line of plug-n-play products and\nthe INfinity 510 UHF fixed reader now in full production, we believe it is\npossible for us to realign our expenditures in order to meet our objective of\nbeing cash flow neutral by the end of next year.\"\nSirit is taking a headcount reduction of over 25%, will close 2 locations\nand will streamline its development efforts to focus on revenue generating\nopportunities. These actions will result in severance and related\nnon-recurring costs of approximately $400,000 which will be expensed primarily\nin the fourth quarter of 2006. These actions along with associated cost\nsavings are anticipated to bring the quarterly expenditure run rate for 2007\nto levels that will allow us to reach our corporate goals.\n\"We are confident that these efforts along with continued revenue growth\nwill enable us to reach our goal of cash flow neutrality by the end of 2007,\"\ncommented Anastasia Chodarcewicz, Chief Financial Officer, Sirit Inc. \"We have\na very strong portfolio of products along with recurring revenue and profits\nfrom our AVI vertical which we believe uniquely position Sirit within the RFID\nmarket.\"\n\"Focusing on our core technological strengths, we have a clear strategy\nand now a fully rationalized organizational structure and skill set that are\nappropriate for where the addressable RFID market is today,\" continued Mr.\nDawalibi. \"While our AVI related operations - parking and access control and\ntolling - as well as closed loop opportunities continue to thrive, we have not\nseen indicators to suggest that the supply chain market will materially grow\nin the near term. We believe our strategic...