Cost Reductions At Microtel Subsidiary to Improve Financial Results; Measures Will Make $425,000 Additional Contribution To Profitability.ONTARIO, Calif.--(BUSINESS WIRE)--July 23, 1998--MicroTel International, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on Small Cap: MCTL MCTL Military Critical Technologies List MCTL Marine Corps Task List MCTL Multi-Conductor Transmission Line ) today announced that its XIT subsidiary has implemented cost reductions designed to significantly lower annual operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. by approximately $425,000, thereby making a substantial additional contribution to profitability . These cost reduction measures are part of an overall corporate strategy directed at minimizing or eliminating specific low margin products, while continuing to focus on products with higher margins. The order backlog for higher margin products has grown dramatically in 1998. Commenting on the cost reduction strategy, William J. Miller William Jennings Miller (March 12, 1899 - November 22, 1950) was a U.S. Representative from Connecticut. Born in North Andover, Massachusetts, Miller attended the public schools. He was graduated from Cannon's Commercial College, Lawrence, Massachusetts, in 1917. , Vice President and Sector Manager for Components and Subsystems Assembly stated, "While 1998 continues to show strong profitability, the implementation of these cost reduction measures will make a substantial additional contribution to further improving the financial operating results of this business unit throughout the remainder of 1998 and into 1999." James P. Butler, MicroTel's CFO See Chief Financial Officer. , commented that, "These actions are indicative of the corporation's strong bottom line focus as it moves to return MicroTel to near- and long-term profitability." XIT Corporation, the largest part of the Component and Subsystem Assembly Sector, designs and manufactures a wide range of information technology products, including custom-designed display and data input subsystems for telecommunication, aerospace and industrial markets. The statements in this press release relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc matters that are not historical are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. which involve risks and uncertainties including, without limitation, economic and competitive conditions in the markets served by the Company affecting the demand for the Company's products, product pricing, market acceptance, access to distribution channels and other risks detailed from time to time in the Company's Securities and Exchange Commission filings. These risks could cause actual results to differ materially from those anticipated or described herein.
CONTACT: James P. Butler, CFO
MicroTel International Inc.
(909) 456-4321
or
Herbert Lanzet/Gerald Ortsman
(212) 687-0061
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