RFM REALLOCATES RESOURCES TO FURTHER STRATEGIC INITIATIVES
DALLAS, TEXAS, (April 24, 2008) RF Monolithics, Inc. [NASDAQ:RFMI] (“RFM” or “the Company”) , a leader in delivering M2M, today announced strategic initiatives to reallocate resources in conjunction with the Company’s strategic plan of transforming RFM into a solutions provider “Delivering M2M”.
The initiatives include the elimination of approximately twenty-five positions resulting from restructuring and consolidating organizations, centralizing back-office functions plus the continued streamlining and outsourcing of functions to strategic partners. While there will be restructuring costs to cover severance in our third quarter, the reduced headcount is expected to generate savings starting in the fourth quarter of the current fiscal year. These savings will be invested and applied to resources to continue the development of the Company’s wireless solutions product offerings to deliver M2M. The savings to the Company are estimated to be over $700,000 annually which is net of the addition of resources currently in its strategic plan to improve capabilities and sharpen its focus on the M2M market.
“As part of our strategic focus on the M2M market we are restructuring and streamlining our operations, consolidating processes and eliminating duplicate functions. We have been very successful in generating savings from previous cost cutting measures, most notably the fabless initiative announced in February, 2007. The five million dollars in annual savings generated from those cost cutting measures has been the main driver in increasing our gross profit margin 1000 basis points to a 40% gross profit margin in our second quarter of fiscal 2008,” stated David M. Kirk, President and CEO of RFM.
"Our strategic plan for moving the Company forward is focused on efficiently designing, developing and marketing best-in-class innovative and quality wireless solutions for the emerging M2M market. Our latest initiative goes beyond cost cutting. As we further define our target vertical markets and broaden our portfolio of solutions offerings, these strategic actions demonstrate our commitment to manage our resources wisely, particularly in the challenging economic environment. We believe our continuing transformation and investment in wireless solution products, software and services for the M2M market should lead to profitable growth as the markets mature,” concluded Mr. Kirk.
About RFM
RFM, headquartered in Dallas, Texas, is delivering M2M around the world. Our solutions-driven, technology-enabled approach to wireless connectivity enables the next generation of wireless applications with a broad range of wireless solutions – from comprehensive industrial wireless sensor networks to high-performance enterprise asset management software – extending the internet to communicate with billions of unconnected machines. RFM was named to M2M Magazine’s “2007 M2M 100” and “2008 M2M 100” list of the most important and influential machine-to-machine technology providers. For more information on RFM, please visit the Company’s website at www.RFM.com.
Forward-Looking Statements:
This news release contains forward-looking statements, made pursuant to the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995, that involve risks and uncertainties. Statements of the strategies, plans, objectives, expectations and intentions of RFM and/or its wholly-owned subsidiaries (collectively, the “Company” or “we”) involve risks and uncertainties. Statements containing terms such as “believe”, “expect”, “plan”, “anticipate”, “may” or similar terms are considered to contain uncertainty and are forward-looking statements. Such statements are based on information available to management as of the time of such statements and relate to, among other things, expectations of the business environment in which we operate, projections of future performance, perceived opportunities in the market and statements regarding our mission and vision, future financial and operating results, and benefits of our acquisitions. Such statements are not guarantees of future performance and involve certain risks, uncertainties and assumptions, including risks related to the ability to integrate acquisitions and alliances as planned, successful transition to a fabless business model, operation of a services business, the highly competitive market in which we operate, rapid changes in technologies that may displace products and services sold by us, declining prices of products, our reliance on distributors, delays in product development efforts, uncertainty in consumer acceptance of our products, and changes in our level of sales or profitability. as well as the other risks detailed from time to time in our SEC reports, including the report on Form 10-K for the year ended August 31, 2007. We do not assume any obligation to update any information contained in this release.
