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Lumenon Innovative
Lightwave Technology Inc.’s (NASDAQ: LUMM) newly appointed President and CEO, Mr.
Gary Moskovitz, announced today the Company’s move-forward business strategy.
“After
an intensive analysis of current business conditions, we are taking the appropriate steps
to implement and communicate what we believe to be a thoughtful program that will allow us
to focus resources, generate revenue, and rationalize spending," said Mr. Moskovitz.
The strategy is made up of three components: Re-focus Product Plans On Growing Market
Segments In response to the recent market downturn, the Company will accelerate its
transition from manufacturing simple passive components to offering a mix of products and
services ranging from optical chips to integrated photonic devices. Integrated devices
provide customers with greater levels of functionality and more value, enabling the
deployment of advanced network equipment at lower prices.
Lumenon will maintain its
short-term focus on the regional and metro/access markets while continuing to pursue long
haul opportunities. This strategy is in keeping with the previously announced joint
development of an advanced COADM with Litton Poly-Scientific and the roll out of the
Company’s 4 and 8 channel passive CWDM devices. (more) LUMENON/2 Leverage Core
Strengths - Target Current Market Opportunities Lumenon’s early success in both
materials science and manufacturing has produced hybrid optical platforms of glass and
polymers to create photonic devices that meet or exceed industry standards.
Building on
its core strengths in proprietary technologies, its high employee skill set, its patented
PHASIC manufacturing process, and its 34,000 sq. ft world class facility and “clean
rooms”, Lumenon will offer potential partners and customers a variety of stand alone
products and services, as well as end-to-end solutions that address initial optical
circuit design, component manufacturing, packaging and testing. Workforce Re-focus and
Rationalization Workforce re-focusing, a process that began in March of this year, has
included the elimination of various senior management functions and a general flattening
of the organization. In addition, the Company has trimmed administrative and support staff
and repositioned certain key individuals to maximize their strengths.
Moving forward the
Company will be recruiting for critical science, engineering and financial positions.
Lumenon has also reduced non-staff related operating expenditures. The changes reflect an
approximate 25 percent net reduction in headcount, from 120 employees to approximately 90
as of June 8th, 2001. Lumenon will also be completing the consolidation of its R&D
facility in Dorval, QC into its new, state-of-the-art, Ville St. Laurent, QC headquarters
and manufacturing center. “Moving forward we are very focused on expense management,”
said Mr. Moskovitz.
At the end of May, based on an unaudited estimate, Lumenon’s cash
position was CDN$23.6 million (US$15.2 million) compared to CDN$27.2 million (US$17.2
million) as of March 31, 2001. The Company is also estimating a one-time restructuring
charge of CDN$2.4 million (US$1.55 million) to be distributed over several years. Building
for the Future Commenting on the new strategy, Mr. Moskovitz said, “The focus for
2001 will center on implementing our growth plan, maturing the technology and the
organization, and sampling out (more) LUMENON/3 various components and services. We remain
confident in our mid- and long-term growth opportunities and believe our breakout
strategy, in conjunction with our fiscal management efforts, set a clearer path for
profitability.” Upcoming Conference Call To expand on the Company’s strategy
going forward, Lumenon will provide a business and financial update and will summarize
recent actions the Company has taken in a conference call scheduled in the very near
future. The date and time of the conference call will be announced shortly.
About Lumenon
Innovative Lightwave Technology, Inc.: Lumenon Innovative Lightwave Technology, Inc.
designs, develops and builds integrated optics devices in the form of packaged compact
hybrid glass and polymer circuits on silicon chips. These photonic devices – based
upon Lumenon’s patented PHASIC® process - offer communications providers the ability
to dramatically boost bandwidth for today's burgeoning telecommunication, data
communication and cable industries. For more information about Lumenon Innovative
Lightwave Technology, Inc., visit the Company's Web site at http://www.lumenon.com.
This press release contains certain “forward-looking” statements, as defined in
the United States Private Securities Litigation Reform Act of 1995, that involve a number
of risks and uncertainties. There can be no assurance that such statements will prove to
be accurate and the actual results and future events could differ materially from
management’s current expectations. Such factors are detailed from time to time in the
Company’s filings with the regulatory authorities having jurisdiction.
This release
is available on the Company’s Web site at www.lumenon.com and the KCSA Public
Relations Worldwide Web site at www.kcsa.com.
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