MINNEAPOLIS — Wireless Ronin Technologies Inc., a Minneapolis-based worldwide digital signage provider, announced it has reduced its workforce by 30 people, or approximately 24 percent, including both employees and contractors.
The company does not expect today’s action to have any impact on Wireless Ronin’s service to its customers.“We are further restructuring our business to decrease our expense base in fiscal year 2009 and preserve cash,” said Steve Birke, Wireless Ronin’s interim chief executive. “By right sizing our organization to meet current market demand, we believe we have positioned Wireless Ronin for improved financial performance and the ability to take advantage of the market shift from manual to digital signage, when the economy stabilizes and deployments accelerate.”
Wireless Ronin expects to take a pretax severance charge in the fourth quarter of 2008 of approximately $275,000, or $.02 per basic and diluted share, relating to this workforce reduction. The company believes right sizing the workforce will decrease quarterly expenses by approximately $1.0 million, or $.07 per basic and diluted share, commencing in 2009.
Today’s announcement, in combination with the action that was announced on Nov. 3, 2008, results in an approximately 40 percent total headcount reduction during the fourth quarter of 2008. The combined pretax severance charge from the two workforce reductions will total approximately $375,000, or $.03 per basic and diluted share, in the fourth quarter of 2008. As a result of the two restructurings and expected lower non-employee operating costs, the company anticipates that ongoing quarterly expenses will decline by approximately $2.0 million, or $.13 per basic and diluted share, commencing in 2009.