xG Technology Announces Further Cost Reduction Initiatives Yielding an Additional $5 Million in Annual Savings
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.