RFM Reallocates Resources to Further InitiativesApril 24, 2008
Company announces restructuring/consolidation; plans continued investment in delivering M2M.
DALLAS, TX--(BUSINESS WIRE)--RF Monolithics, Inc. (NASDAQ:RFMI), a leader in delivering M2M, announced strategic initiatives to reallocate resources in conjunction with the company's strategic plan of transforming RFM into a solutions provider "Delivering M2M."
The initiatives include the elimination of approximately twenty-five positions resulting from restructuring and consolidating organizations, centralizing back-office functions plus the continued streamlining and outsourcing of functions to strategic partners. While there will be restructuring costs to cover severance in our third quarter, the reduced headcount is expected to generate savings starting in the fourth quarter of the current fiscal year. These savings will be invested and applied to resources to continue the development of the company's wireless solutions product offerings to deliver M2M. The savings to the company are estimated to be over $700,000 annually which is net of the addition of resources currently in its strategic plan to improve capabilities and sharpen its focus on the M2M market.
"As part of our strategic focus on the M2M market we are restructuring and streamlining our operations, consolidating processes and eliminating duplicate functions. We have been very successful in generating savings from previous cost cutting measures, most notably the fabless initiative announced in February, 2007. The five million dollars in annual savings generated from those cost cutting measures has been the main driver in increasing our gross profit margin 1000 basis points to a 40% gross profit margin in our second quarter of fiscal 2008," stated David M. Kirk, President and CEO of RFM.
"Our strategic plan for moving the Company forward is focused on efficiently designing, developing and marketing best-in-class innovative and quality wireless solutions for the emerging M2M market. Our latest initiative goes beyond cost cutting. As we further define our target vertical markets and broaden our portfolio of solutions offerings, these strategic actions demonstrate our commitment to manage our resources wisely, particularly in the challenging economic environment. We believe our continuing transformation and investment in wireless solution products, software and services for the M2M market should lead to profitable growth as the markets mature," concluded Mr. Kirk.
RFM, headquartered in Dallas, TX, is delivering M2M around the world. Our solutions-driven, technology-enabled approach to wireless connectivity enables the next generation of wireless applications with a broad range of wireless solutions—from comprehensive industrial wireless sensor networks to high-performance enterprise asset management software—extending the Internet to communicate with billions of unconnected machines. RFM was named to M2M Magazine's "2007 M2M 100" and "2008 M2M 100" list of the most important and influential machine-to-machine technology providers.
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