ROCHESTER, N.Y. - Vuzix (NASDAQ:VUZI) Corporation (NASDAQ: VUZI), a prominent supplier of smart glasses and augmented reality (AR) products, today announced the initiation of a comprehensive cost reduction program alongside its preliminary revenue results for the fourth quarter of 2023.
The company is refining its focus on selected AR smart glasses products, technology development, and its original equipment manufacturer (OEM) business. This strategic shift includes a significant cost reduction program aimed at streamlining operations. Vuzix President and CEO Paul Travers stated, "These proactive steps will reduce our cost structure and improve our operating results." The plan is expected to reduce cash annual operating expenses by approximately $8 million, or 25%, which should enhance operating margins and reduce cash losses.
The restructuring will entail global staff reductions across various departments, including Sales and Marketing; General and Administrative; Research and Development; and Manufacturing Overhead. These measures are anticipated to make a material contribution to the operating results in 2024.
Vuzix also released preliminary revenue figures for the fourth quarter ended December 31, 2023, with an expected revenue of about $2.1 million. This represents a 36% increase in product sales over the third quarter of 2023, indicating sustained commercial demand for the company's AR smart glasses. However, there was a 72% sequential decrease in engineering services revenue.
Travers commented on the revenue fluctuations, expressing optimism about the company's long-term prospects and its growing focus on core technology for OEM and white label programs. He stated, "The changes announced today are in line with our goal to deliver shareholder value as the AR smart glasses industry grows."
This news is based on a press release statement from Vuzix Corporation.
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