AVT Adjusts Direction
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AVT Corporation, late yesterday, unveiled a plan to adjust its strategic direction, including a 14% reduction in its workforce.
The Kirkland-based provider of unified communications and mobile business solutions will continue to build a business model for growth based on the Mobile Business Solutions market, while at the same time maximizing the return on its traditional businesses.
Company officials noted that they would look at speed-to-market options such as the acquisition of technology and professional services infrastructure, as well as partnering opportunities, to accelerate growth.
In order to focus on building its new technology while managing its traditional product lines, including RightFAX, CallXpress, and MediaLinq, the company has consolidated its two primary product groups, the Computer Telephony Software Group and Document Exchange Software Group.
With this consolidation, approximately 70 jobs, or 14% of AVT's workforce will be laid off in order to reduce redundancies in areas such as finance and administration, operations, marketing, and support.
"With the acquisition of Infinite Technologies and the organizational changes that we are implementing today, we are well poised to leverage our current channel partnerships and strategic alliances as well as develop new ones," said David Anastasi, President and CEO of AVT.
While a portion of the investment required to implement the new strategy and products will come from earnings generated by existing product lines, according to executives at AVT, additional investment will be required.
As a result, AVT posted revenue guidance for a loss of between $0.16 and $0.24 per share for the year 2001 on revenues of $88 to $92 million.
"We have thoroughly evaluated the market and believe that business as usual will not create sustainable shareholder value," said Anastasi. "As a result, AVT is now focusing on strategic investments in growth areas while immediately making necessary workforce reductions and realignment in areas with less opportunity."