DOCdata N.V. restructures its activities in the UK and California.VUGHT, The Netherlands--(BUSINESS WIRE)--Nov. 3, 1998--As a result of low sales and operating losses, DOCdata N.V. (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 : DOCDF; AEX AEX See: Amsterdam Exchange : DOCD DOCD Development Operations Coordination Document ) has decided to restructure its operations in the UK and California. The restructuring program will include a reduction in the number of employees in the UK and California of approximately 120. Currently, DOCdata employs approximately 400 people in the UK and California. As a result of higher efficiency, DOCdata expects that less capacity will be required to produce a similar output. This will enable the transfer of production lines from the UK to markets on the European Continent where DOCdata can achieve higher operating margins. DOCdata N.V. expects significantly lower operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. in 1998 compared to 1997. In 1997, DOCdata's operating income was NLG NLG The ISO 4217 currency code for the Dutch Guilder. 21.7 million. The lower operating income is primarily due to the losses in the newly acquired operations in the UK and California. Net income in 1998 is expected to be sharply higher than last year due to the positive balance between the result on the sale of CAE (1) (Computer-Aided Engineering) Software that analyzes designs which have been created in the computer or that have been created elsewhere and entered into the computer. in September, and the cost of the above mentioned restructuring. The current costs of and the provision for the restructuring is expected to amount to approximately NLG 7 million. In 1997, DOCdata's net income was NLG 14 million. DOCdata N.V. is a leading independent producer of audio and multimedia CDs and provides related services, with facilities in the Netherlands, France, Germany, United Kingdom and the United States. DOCdata also designs and builds production systems based on optical and laser technology. |
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