Novatel Wireless Announces Restructuring Initiatives, Up To 80 Jobs To Go

(RTTNews) - Novatel Wireless (NVTL) Monday said it is implementing restructuring initiatives designed to refine its business operations and capitalize on synergies in its target markets to drive long-term profitability.

In connection with the restructuring plan, the company is making strategic organizational changes across some of its Mobile Computing and Machine-to-Machine or M2M business operations. These changes are to streamline its research and development resources and consolidate many global manufacturing activities to drive efficiencies.

The company expects that the restructuring initiatives will be substantially completed within the next 30-45 days. Once fully implemented, the restructuring initiatives are expected to generate annualized, pre-tax savings of $10 million to $11 million, which will begin to be realized in the fiscal fourth quarter of 2013.

Cost savings will be achieved through the consolidation of one of the company's development sites and certain manufacturing and other activities, which the company expects to lead to a headcount reduction of 75 to 80 employees.

The company expects to record an associated, pre-tax restructuring charge of $3.2 to $4.6 million in its GAAP financial results for the second half of 2013, the majority of which is expected to occur in the fiscal third quarter.

This estimated charge includes termination benefits and associated costs, relocation costs, and expenses associated with the facilities consolidation.

The company expects revenue for the third quarter of 2013 to be within the outlook range it provided on August 7.