Wizcom Technologies Ltd. :Ad hoc: Wizcom Takes Further Measures to Reduce Operating Costs

19 januari 2012 Wizcom Technologies Ltd. / / Ad hoc: Wizcom Takes Further Measures to Reduce Operating Costs . Processed and transmitted by Thomson Reuters ONE. The issuer is solely responsible for the content of this announcement. Rosh Ha'ayin, January 19(th), 2012 - Wizcom Technologies Ltd. (Prime Standard: WZM, IL 0010830706) announces today that the Company's Management has decided to close the R&D department and lay off its entire development team.  The measure is taken in order further to reduce operating costs by approximately US$ 500,000 per year. As a consequence, Wizcom will not be able to realize the launch of its new product generation around the middle of 2012.  Management explains the action taken by the need to balance costs with the very significant reduction in revenues in Q4 2011 and the Company's limited ability to raise additional funds. By discontinuing R&D efforts, running costs of Wizcom (excluding Galil and Wizcom Inc) will be reduced to less than US$ 180,000, in order to reach balance with the proceeds from the current sales of reading pens and to reach break even. In addition, the Management is striving to reach an agreement with its major debt holders in order to secure ongoing operations. The Company has current liabilities through its outstanding bonds and to suppliers, in excess of US$ 2 million.  Achieving a positive cash flow through further cost reductions is condition precedent for such an agreement. This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Wizcom Technologies Ltd. via Thomson Reuters ONE [HUG#1578749]