Xata Cuts 29 Employees As it Shifts Toward Mobile Devices
July 06, 2012
In May, the Eden Prairie, Minn.-based company added eight new tablets and smartphones certified to work with the Xata Turnpike fleet management solution, for a total of more than 85 devices certified to run Xata Turnpike.
"The days of multi-thousand dollar, difficult-to-install and proprietary platforms are fading away," said Christian Schenk, vice president, market development and product marketing, at the time. "A tablet by definition is a portable device that operates completely independent of other hardware or cradles, and doesn't require a three-hour installation. The Xata Turnpike solution self-installs in minutes and operates with a mobile device seamlessly without any bulky harnesses or cradles."
The company filed with the U.S. Securities and Exchange Commission on Tuesday. The cuts represent less than 10% of the Xata's workforce, reports the Minneapolis Business Journal
The company says it expects the cuts to cost $800,000 in restructuring for the quarter that ended June 30, but the move will ultimately save Xata $2.8 million a year.
Also in the SEC filing, the company noted charges of between $1.3 million and $1.6 million to write off obsolete inventory. A $3.4 million impairment charge "on intangible assets associated with one of its legacy products" was necessary, the Journal reports.