Burnaby-based WebTech Wireless Inc. (TSX:WEW) has cut more than 10% of its full-time staff in an effort to reduce costs and bring the company closer to profitability.
The cuts affect roughly 15 of its total staff of 143 reported in the company's annual information form. The company had employed 119 people in B.C.
Anwar Sukkarie, president and CEO of the GPS fleet telematics developer said, "We needed to align our expenditures with the timing of the related revenues and this exercise is intended to achieve just that."
In the third quarter ending September 30, 2009, WebTech reported a 36.5% drop in revenue to US$4.5 million from US$7.1 million and a net loss of US$2 million compared to a small profit of US$64,000 in the same period last year.
A hardware sales decline triggered by contract delays by WebTech's customers due to the recession was cited as the main reason for the drop in revenue.
WebTech reported a 60% decline in quarterly sales from the U.S. to US$1.8 million from US$4.5 million and a 48% sales decline in Latin America.
In the previous two quarters of the year, the company remained close to profitability, reporting a $169,000 loss in the second quarter and $115,000 in net profit in the first quarter.
The changes affect only WebTech employees and do not affect the operations of its Toronto-subsidiary Grey Island Systems that the company acquired in October in a share deal worth approximately $44 million.
WebTech's share price range during the past week: between $0.75 and $0.78; 52-week high: $1.90; 52-week low: $0.70.