LoJack Corporation (Nasdaq GS: LOJN) reported today that it has restructured the company’s operations and reduced staffing to maintain and strengthen the company’s position in the marketplace.
These initiatives principally affect the company’s corporate headquarters and field sales organization. The approximately $1.8 million charge related to these cost reductions will be reflected in the second quarter of this year and provide a benefit of approximately $3.5 million over the remainder of 2010, with an annualized benefit of approximately $6.8 million beginning in 2011. The work force reductions are expected to be completed in the second quarter of 2010.
In making the announcement, Richard T. Riley, Chairman and CEO said, “We regret the hardship that this restructuring will have on affected employees but believe these actions position us well to meet the changing dynamics of the automobile marketplace. We remain focused on our core domestic auto and international licensee businesses while continuing to build our Italian subsidiary and the LoJack SafetyNet business, which serves those with autism and Alzheimer’s.
“The stabilization in the global auto market over the last few months has been encouraging. We continue to expect a moderate year over year increase in revenue, modest profit, positive operating cash flow and healthy margins for 2010. Our revenue growth will be gradual and will be concentrated in the second half of the year.”