Toronto and London fixed and mobile wireless broadband solution provider, Redline Communications (TSX & AIM: RDL), slashed its guidance for the full year ended 31 December 2009.
The company had previously stated that it would generate approximately US$43.5 million in revenues in 2009, in line with the previous year, but this morning the company slashed the revenue expectation to by $5.5 million to $38 million. Redline also warned that it would not meet its fourth quarter target of turning EBITDA (earnings before interest, tax, depreciation and amortisation) and cash flow positive.
Due to the lower than anticipated revenues, the company has already slashed its global workforce by 10%, including several senior management members and Chief Operating Officer (NYSE:COO) Jim Dickerman. “Redline has scaled back its operations in Europe and Asia Pacific, and will concentrate its efforts on the Americas and Middle East where the Company is a major player,” the company added.
"We have taken the necessary steps to better focus on the geographic regions where we have a strong presence and have historically driven the most growth, realigning our organizational structure accordingly," said Eric Melka, Redline's Acting CEO.
Disclosure: The author holds no positions in the company