TEMPE, Ariz. - Wrap Technologies, Inc. (NASDAQ:WRAP), a public safety solutions provider, today revealed a strategic plan aimed at stimulating growth and enhancing shareholder value. The company has reduced its workforce by 30% as part of a cost-saving initiative, which is expected to save $2.4 million annually. These savings come from a combination of layoffs and outsourcing completed in the past 45 days.
In contrast to these reductions, Wrap Technologies is expanding its manufacturing capabilities in Tempe, Arizona, to accommodate the increasing global demand for its BolaWrap® Remote Restraint device. This expansion is anticipated to improve production throughput with the help of advanced technology.
CEO Scot Cohen expressed confidence in the company's restructuring, saying "I am confident that this decision will yield long-term results in efficiency, discipline and focus while driving shareholder value." He also highlighted the strategic importance of the Tempe facility, which will become a dedicated manufacturing and research and development division.
Furthermore, the company is investing in its sales and marketing infrastructure to leverage industry growth trends. This includes the expansion of its corporate headquarters in Miami, Florida, and the recruitment of executive and corporate talent to support its enterprise-level sales and marketing team.
Wrap Technologies, known for its BolaWrap® solution and Wrap Reality™ virtual reality training system, focuses on creating non-lethal public safety tools and services. The company's products are designed to help law enforcement agencies manage situations with minimal harm and foster stronger community relationships.
This news article is based on a press release statement from Wrap Technologies, Inc.
InvestingPro Insights
As Wrap Technologies, Inc. (NASDAQ:WRAP) navigates through its restructuring phase, the company's financial health and stock performance are crucial for investors to monitor. According to real-time data from InvestingPro, Wrap Technologies holds a market capitalization of $180.39 million USD. Despite a challenging outlook with analysts not expecting profitability this year, the company has shown significant revenue growth over the last twelve months as of Q3 2023, with an increase of 32.06%. This growth is even more pronounced on a quarterly basis, with a surge of 113.46% in Q1 2023.
The stock's price movements have been quite volatile, reflecting a 44.68% return over the last month and an impressive 109.23% over the last six months. Wrap Technologies is trading near its 52-week high, at 97.61% of this peak, signifying investor optimism in its growth potential. However, with a high Price / Book multiple of 9.73 as of Q3 2023, the valuation is steep compared to its book value.
InvestingPro Tips suggest that while the company holds more cash than debt on its balance sheet, making it potentially resilient in the short term, it is trading at a high revenue valuation multiple, which could be a concern for value-focused investors. Furthermore, Wrap Technologies does not pay a dividend, which might influence the investment decision for those seeking regular income.
For those considering an investment in Wrap Technologies, a subscription to InvestingPro offers additional insights and tips that can help make informed decisions. Currently, InvestingPro is on a special New Year sale with discounts of up to 50%, and using coupon code SFY24 will get you an additional 10% off a 2-year InvestingPro+ subscription, or SFY241 for an additional 10% off a 1-year subscription. With numerous additional tips available on InvestingPro, investors can gain a comprehensive understanding of the company's financials and market position.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.