(By Balaseshan) Smart Technologies Inc. (NASDAQ: SMT) said it will cut about 25% of its workforce during the third and fourth quarters as part of corporate restructuring.
The company announced a corporate restructuring that will sharpen focus on each of its target markets in Education and Enterprise while simultaneously streamlining its corporate support functions.
The restructuring will realign the organization into two business units. The estimated financial impact is an annualized pre-tax cost savings of about $40 million once fully implemented by the fiscal fourth quarter ending March 31, 2013.
One-time charges associated with the restructuring are currently under review and additional details will be provided when the company reports its third-quarter financial results.
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"Today's announcement marks a significant change in Smart's operating model and has been designed to improve the customer experience and provide a more efficient and robust platform to build upon," said Neil Gaydon, President and CEO of Smart.
The company said the new structure will enable a more effective go to market strategy for its Education and Enterprise customers. The markets Smart operates in remain challenging, and establishing the right operating platform is critical to successfully executing its strategy.
The company designs, develops and sells interactive technology products and integrated solutions that enhance learning. Its core interactive technology solution is its interactive whiteboard product category. SMART Board interactive whiteboards combine the simplicity of a whiteboard and the power of a computer.
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SMT is trading up 1.50% at $1.35 on Tuesday. The stock has been trading between $1.10 and $4.68 for the past 52 weeks.