Stockholm, Sweden - 25 August 2014 -Transmode, a global provider of packet-
optical networking solutions, today announced that it has decided to implement a
cost and efficiency program to increase profitability and ensure continued
investments in product and market development. The measures will affect up to
30 employees.
Transmode has been affected by reduced growth and profitability for some time,
mainly due to weaker sales. In order to increase profitability and ensure
continued investments in product and market development, the company is now
implementing a cost and efficiency program.
The program is intended to reduce costs by some SEK 40 m annually and includes a
combination of personnel cutbacks, other savings and measures to increase
efficiency. Up to 30 employees in Sweden and abroad will potentially be affected
by the program. The costs of implementing the program are estimated at SEK 10 m,
which will be posted to the third and fourth quarters 2014.
The personnel cutbacks are subject to negotiation with the trade unions. The
negotiations are scheduled to be completed in September.
"We've had to make a tough announcement to our staff today," commented Karl
Thedéen, CEO of Transmode. "The competition is intense and the cost and
efficiency program is necessary to meet Transmode's high profitability target.
It also creates scope for continued investments in product and market
development, which are necessary to reach our growth targets. We still perceive
significant market potential for our products, including the new 100G products
as well as Mobile Backhaul and Fronthaul, where we're very well positioned,"
concluded Karl Thedéen.
The information in this announcement is required to be disclosed by Transmode AB
under the Swedish Securities Markets Act (Sw. lagen om värdepappersmarknaden).
This information was released for publication at 10:00 AM CEST on 25 August
2014.
This is a translation of the Swedish original. In case of any inconsistency
between the Swedish and English version, the Swedish version shall prevail.
For more information please contact:
Ola Elmeland
Vice President Marketing & Communications
Transmode Systems AB
Telephone: +46 8 506 882 71
Email: ola.elmeland@transmode.com
About Transmode
Transmode is a global provider of packet-optical networking solutions that
enable fixed line and mobile network operators to cost effectively address the
capacity needs created by the rapid growth in video and data traffic. These
solutions are important building blocks in next-generation high-speed optical
networks that support services such as broadband backhaul, mobile data backhaul,
video delivery services and cloud computing. Transmode's solutions are designed
to increase the capacity, flexibility and functionality of metro and regional
networks and are based on Wavelength Division Multiplexing (WDM) and transport
technologies such as Ethernet. Transmode's Native Packet Optical 2.0
architecture gives customers key advantages such as cost efficient Ethernet
services, ultra-low latency, low power consumption and future proof network
design.
Transmode is headquartered in Stockholm, Sweden and is listed on the NASDAQ OMX
Stockholm Exchange (TRMO). Since 2000 the company has installed more than
45,000 systems for over 550 fixed and mobile network operators, service
providers, large enterprises and public institutions in over 50 countries across
the globe.
For additional information about Transmode, please visit www.transmode.com.
[HUG#1850778]
