Wi-LAN Inc. says it will cut staff by 55 per cent and make management changes to conserve approximately $500,000 per month.
These changes are also being made to sustain Wi-LAN's sales growth projections in the fixed wireless access market.
"Our goal is to live within our means until we see a turnaround in this market we are addressing," said Hatim Zaghloul, Wi-LAN's president, chairman and CEO, in a news release.
"We are weathering a storm and we are taking the necessary steps to guide ourselves through it."
Wi-LAN will no longer have a separate president and CEO. By mutual agreement, Bill Hews has stepped down as president, but will carry on as a director of Wi-LAN. Zaghloul will add the position of president to his duties.
Wi-LAN is also reducing its staff to approximately 55 people. With this reduction in staff and planned reductions in other operating expenditures, management expects to maintain a minimum cash balance of $3 million over the next 12 months.
"We are confident that we are able continue to operate within our existing cash resources without recourse to external financing sources," said Steve Bellamy, Wi-LAN's CFO.
Wi-LAN met its third quarter guidance of $7 to $9 million in broadband wireless revenue, which was revised upwards on July 5, 2001 from the $6 to $9 million forecast in May. Wi-LAN is reaffirming its wireless revenue target of between $8 and $10 million for the three months ending Oct. 31, 2001.
The company’s Broadband Wireless Systems (BWS) products are in the manufacturing stage, so fewer resources are required for research and development.
Wi-LAN will now focus on delivering its high-speed wireless networking products to developers of large-scale networks around the globe.
Wi-LAN (WIN-TSE) is a high-speed wireless data and Internet communications company, specializing in high-speed Internet access, LAN/WAN extension and broadband wireless access. Wi-LAN is the chair company of the OFDM Forum.
