PT plans to restructure its operations and reduce its workforce by 10 percent.
The company, officially Performance Technologies Inc. (NasdaqGM: PTIX), said Wednesday the workforce reduction will mean the loss of 14 employees. It plans to “rationalize its product lines and refocus its resources on initiatives that are more closely aligned with the company’s near-term objectives and market potential.”
The restructuring includes a non-cash impairment charge against certain software development costs and purchased intangible assets, the company said. PT estimated the changes will lead to annual cost savings of $1.3 million to $1.5 million in 2013.
In March, PT reported a return to profitability for the fourth quarter 2011 after several quarters of financial struggles. However, the company has struggled since.
PT posted a net income of $300,000 for the first quarter, but its revenues declined. The second quarter saw a net loss of $1.4 million while revenues continued to decline. PT’s stock plummeted 25 percent in August.
Shares of PT stock closed at $1.19 on Wednesday. That marks the stock’s lowest closing price since the company went public in 1996. The stock was trading at $1.22 a share midday Thursday.
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