CALGARY, Nov. 7 /CNW/ - Inventronics Limited (IVX:TSXV), a designer and manufacturer of custom metal enclosures for the communications, electronics and other industries in North America, today announced restructuring of its operations.
On October 15, 2008 the supply contract with the Corporation's largest customer expired. Inventronics will be entering into a supply contract to continue to supply that multinational corporation in Canada and will supply a small number of products to its United States operations. In the first half of 2008 sales to this customer's US operations represented approximately 60% of Inventronics' total sales.
Management and the board of directors have taken actions to reduce costs to be in line with expected levels of sales. These actions include the reduction in employees from approximately 200 in July to 56 now. Costs associated with these actions will be recognized in the third and fourth quarters of this year.
Mr. Alex Klopfer has resigned from the board of directors effective October 30, 2008. The board has no immediate plans to replace Mr. Klopfer. We thank him for his service to Inventronics.
A further discussion of these actions and the outlook for the future will be included in the Management Discussion and Analysis for the third quarter which will be issued later this month.
Disclaimer
Certain statements in this press release, including the impact of the event on future sales, are forward-looking statements. The reader is cautioned that assumptions used in the preparation of such information, although considered reasonable by Inventronics at the time of preparation, may prove to be incorrect. Actual results achieved during the forecast period will vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors, many of which are beyond the control of Inventronics.
Inventronics' disclosure documents can be viewed under the Company's SEDAR profile at www.sedar.com.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.