SARASOTA, Fla., Oct. 10, 2016 /PRNewswire/ -- xG
Technology, Inc. ("xG" or the "Company") (Nasdaq: XGTI, XGTIW), a
leader in providing critical wireless communications for use in
challenging operating environments, announced that it is on track
to record annual cost savings exceeding $2.0M resulting from synergies realized by the
acquisition of Integrated Microwave Technologies (IMT). This is
above the amount forecasted in February
2016 when the acquisition was concluded, and includes cost
reductions that have already been recorded as well as ones that are
still coming.
Among the areas where cost reductions have been and/or will be
realized since IMT became a business unit of xG are the
following:
- Rightsizing of staff levels to align headcount with near and
mid-term realizable revenue opportunities. This has included
replacing contractors used in both the xMax and IMT business units,
and integrating the engineering talent of both business units to
support product and technology development efforts for all product
lines. This has resulted in a reduction in costs of approximately
$700,000 annually;
- Relocation of all manufacturing of xMax products to IMT's
facility in New Jersey, which will
result in savings of up to $700,000
per year;
- Downsizing the company's Fort
Lauderdale facility, resulting in savings of approximately
$150,000 per year;
- Efficiencies resulting from unification of the sales operations
of the xMax and IMT business units under common sales management,
which will provide savings of approximately $175,000 annually;
- Expected continuing savings in lease and related costs as
operations in New Jersey are
rightsized, amounting to an additional $150,000 to $200,000 per year;
- Costs reductions realized in the Company's internal software
application licensing contracts, web site development and hosting
fees, and fees paid to external public relations and other
contractors, resulting in savings of approximately $50,000 per year;
- Significant enhancements made to the Company's accounting
processes and functions, resulting in increased efficiencies and
better operational compliance.
In addition to driving cost savings, cross-training of personnel
to provide integrated solutions incorporating both xMax and IMT
products enables xG to identify and close on new business
opportunities. The most recent example of this was the recently
announced $3.0M award xG won in
partnership with the Southwest Research Institute for a spectrum
sharing technology prototype.
George Schmitt, CEO and Chairman
of the Board of xG Technology, said, "We continue to streamline our
operations consistent with the efficiencies we envisioned attaining
when we acquired IMT. We are realizing significant savings in all
key operational areas, including staff headcount levels, sales,
manufacturing, production and technology development. We expect
this trend to continue as we deliver on our goal of monetizing our
technology assets and identifying new business opportunities."
About xG Technology, Inc.
Founded in 2002, xG Technology has created a broad portfolio of
intellectual property that enables always-available,
always-connected and always-secure voice, broadband data and video
communications. The company is the developer of xMax, a patented
all-IP software-defined cognitive radio network that delivers
mission-assured wireless connectivity in any RF environment. xMax
provides a solution to the challenges of interoperability,
survivability and flexibility in expeditionary and critical
communications networks. xMax can be deployed as fixed or mobile
infrastructure to enhance and integrate seamlessly with legacy
communications systems, both private and commercial. Access and
priority can be controlled, and in the event of congestion, failure
or denial of access to commercial networks, xMax provides a fully
secure, scalable, private and highly resilient network for
essential communications – all at zero bandwidth cost.
xMax incorporates advanced optimizing technologies that include
spectrum sharing, interference mitigation, multiple-input
multiple-output (MIMO) and software defined radio (SDR). These and
other technologies make xMax ideal for wide area, as well as rapid
emergency communication deployment in unpredictable environments
and during fluid situations. xG offers solutions for numerous
industries worldwide, including military, emergency response and
public safety, telemedicine, urban and rural wireless broadband,
utilities, and critical infrastructure.
xG's Integrated Microwave Technologies (IMT) business unit
further supports xG's military and public safety customers with its
mission-critical wireless video solutions. IMT is a leader in
advanced digital microwave systems and a provider of engineering,
integration, installation and commissioning services serving the
MAG (Military, Aerospace & Government), broadcast, and sports
& entertainment markets. IMT's product lines include
digital broadcast microwave video systems and compact microwave
video equipment for licensed and license-free applications. More
information on IMT can be found at www.imt-solutions.com.
Based in Sarasota, Florida, xG
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.
For More Information:
Media Relations
Daniel Carpini
xG Technology
daniel.carpini@xgtechnology.com
(941) 953-9035
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SOURCE xG Technology, Inc.