Vuzix Corporation, a leading supplier of smart glasses and Augmented Reality (AR) technology and products, announced the immediate commencement of an expansive cost reduction program and its preliminary fourth quarter 2023 revenues.
Commencement of Cost Reduction Program
Vuzix announced that it will be focusing its efforts on select AR smart glasses products, technology development and its OEM business. As such, the Company is implementing efficiencies, including a significant cost reduction program, that are designed to better streamline operations.
“We are focused on the alignment of our resources to better serve our key product and technological opportunities and the interests of our shareholders,” said Paul Travers, President and Chief Executive Officer. “These proactive steps will reduce our cost structure and improve our operating results, while concurrently allowing us to continue to invest in new technologies and products and maintain our high standard of customer service and support.”
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“Our focus is on improving the ability to deliver on more breakthroughs in OEM products and services, as well as the realization of related technology investments. As a result, we’ve identified opportunities to reduce or discontinue investments in certain areas while maintaining our investment and focus on initiatives that should deliver the most impact long-term. These organizational changes will include reductions of our global staff across all major areas of our business, including Sales and Marketing; General and Administrative; Research and Development; and Manufacturing Overhead,” Mr. Travers continued.
“We anticipate that these proactive actions will result in a reduction of our cash annual operating expenses of approximately $8 million or 25%, once fully implemented. Looking forward, these collective actions should help us to improve our operating margins and significantly reduce cash losses, even during challenging demand environments while certain markets continue their slow but consistent evolutions,” Mr. Travers concluded.
Vuzix also announces its preliminary revenues for the fourth quarter ended December 31, 2023. Fourth quarter revenue is expected to be approximately $2,100,000. Total product sales for Q4-2023 rose by 36% over Q3-2023, reflecting continuing commercial demand for Vuzix’ AR smart glasses. Offsetting this improvement was a 72% sequential decline in realized engineering services.
SOURCE: PRNewswire