The global slowdown is exacting a toll from superwide digital printers maker Nur Macroprinters (Nasdaq:NURM), which is been slashing jobs as its revenues shrink.
The Nur management does not predict an end to the slowdown any time soon, but adds that even if revnues fail to rise, it does not expect to incur losses in the fourth quarter.
It is modifying its strategy, though, in keeping with the times. "Beginning this quarter, we are taking actions to insure that we will be profitable at our current revenue level of $30 million per quarter, in the event of a delayed economic turnaround," stated president and CEO Erez Shachar.
The plan for consolidations and other cost-reduction measuresis still being worked out, CFO Hilel Kremer told TheMarker.com. So far Nur has dismissed between 30 to 40 workers, but more job cuts are inevitable this year. The company is down to 460 employees.
Although Kremer declined to describe where the cuts were made, he said they might affect R&D too. The company has yet to decide how many jobs to cut, he added.
Meanwhile, Nur has relocated R&D formerly done in San Antonio, Texas, to Israel.
Third-quarter revenue edged down to $30.1 million, compared with $30.3 million in the second quarter and 17.8% less than in the third quarter of 2000. Nur's management sees no increase in the fourth quarter or first quarter of 2002. "Our starting point is that if the bottom line gets better, it will not be because of an increase in revenue, but because of a decrease in costs," said Kremer.
Operating profit for the third quarter dropped to $800,000, compared with $4.4 million in the parallel quarter of 2000. Net profit decreased to $83,000, or one cent per share, compared with an EPS balance in the second quarter.
The company had $13.4 million cash as of September 30, and a positive cash flow of $2.9 million.