SARASOTA, Fla., April 30, 2018 /PRNewswire/ -- xG Technology, Inc. ("xG" or the "Company") (Nasdaq: XGTI, XGTIW), a leading provider of wireless video solutions to broadcast, law enforcement and defense markets, and private mobile broadband networks for critical communications, announced today that it has implemented cost reduction initiatives that are expected to result in a further $5 million in savings on an annual basis. More than half of that amount is the result of steps already taken, while the balance is expected to be implemented over the next 60 days.
Initial savings were realized through cost reductions primarily affecting the xMax division through a reduction in personnel and associated benefits, facilities and other expenses. The Company previously announced successful cost reductions related to its IMT and Vislink businesses immediately after the acquisitions. In both cases, xG exceeded its projected cost savings and synergies within the first year of taking ownership and operational control of the acquired entity. The Company will now focus on realizing the same substantive savings, efficiencies and synergies in the xMax division.
Gary Cuccio, Executive Board Chairman and CEO, said, "These cost reductions are part of our mission to enhance our focus on profitability throughout all aspects of our businesses while preserving paths to revenue growth. Over the past two years, our strategy was to diversify xG's opportunities beyond xMax to reduce the overall risk profile of the business. The successful acquisition and integration of IMT and Vislink allowed us to achieve this, while creating a blueprint for additional acquisitions we are already considering. We are confident that the actions we have announced today will allow us to derive positive cash flow from our operations and result in substantially enhanced shareholder value."
Concurrent with the reductions in costs, the Company is also assessing its strategic alternatives related to the xMax division including, without limitation, the possibility of divestiture of the division. As part of that, the Company foresees a short timeline in which the xMax division will successfully rationalize its reduced expense base and/or will be identified for possible divestiture.
About xG Technology, Inc.
xG Technology's brands provide wireless video solutions to broadcast, law enforcement and defense markets, and private mobile broadband networks for use in challenging environments. xG's brand portfolio includes Integrated Microwave Technologies (IMT), Vislink and xMax.
IMT and Vislink are the leading suppliers of advanced digital microwave systems for capturing, transmitting and managing secure, high-quality, live video. IMT and Vislink are trusted suppliers to tier-1 global customers in the broadcast/sports/entertainment, and law enforcement/public safety/defense markets. Their products are recognized for high levels of performance, reliability, build quality, extended operating ranges and compact form factors. In the broadcast, sports and entertainment sectors, IMT and Vislink provide high-definition communication links to reliably collect and distribute live event footage. In the law enforcement, public safety & defense markets, IMT and Vislink provide secure video communications and mission-critical solutions to local, national and international agencies and organizations. More information can be found at www.imt-solutions.com and www.vislink.com.
xMax is a secure, rapid-deploy mobile broadband system that delivers mission-assured wireless connectivity in demanding operating environments. xMax was specifically designed to serve as an expeditionary and critical communications network for use in unpredictable scenarios and during fluid situations. This makes it a compelling solution for disaster response, emergency communications, and defense applications. More information about xMax can be found at http://www.xgtechnology.com/system-overview/. In addition to the above business lines, xG has a dedicated Federal Sector Group (xG Federal) focused on providing next-generation spectrum sharing solutions to national defense, scientific research and other federal organizations. Additional information about xG Federal can be found at http://www.xgtechnology.com/technology/xg-federal/.
Based in Sarasota, Florida, xG Technology has over 100 patents and pending patent applications. xG is a publicly traded company listed on the NASDAQ Capital Market (symbol: XGTI) For more information, please visit www.xgtechnology.com.
Cautionary Statement Regarding Forward Looking Statements
Statements contained herein that are not based upon current or historical fact are forward-looking in nature and constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Such forward-looking statements reflect the Company's expectations about its future operating results, performance and opportunities that involve substantial risks and uncertainties. These statements include but are not limited to statements regarding the intended terms of the offering, closing of the offering and use of any proceeds from the offering. When used herein, the words "anticipate," "believe," "estimate," "upcoming," "plan," "target", "intend" and "expect" and similar expressions, as they relate to xG Technology, Inc., its subsidiaries, or its management, are intended to identify such forward-looking statements. These forward-looking statements are based on information currently available to the Company and are subject to a number of risks, uncertainties, and other factors that could cause the Company's actual results, performance, prospects, and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements.
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