AudioDev announces restructuring of operations

AudioDev, world-leading supplier of test equipment for optical media, is restructuring its operations, to meet new market demands. Following the restructuring process, negotiations with union representatives regarding 25 jobs will be initiated immediately.

The market for optical media is expected to show continued growth in the next few years. This is primarily due to the introduction of third-generation optical media, a technology referred to as blue laser optical media. AudioDev however expects that the market is entering a more mature phase. The demand for DVD testing equipment is expected to decline compared to last years’ volumes. At the same time, blue-laser testing equipment is likely to be requested at a lower rate than previous models. Effects stemming from lower demand, however, are likely to be offset by an increase in overall price levels on the market. The new testing equipment is rendering streamlining opportunities in terms of time-reduction and more effective administration of product guarantees for AudioDev. AudioDev also expects to be able to cut spending on internal support processes. The restructuring efforts are expected to lead to an overcapacity in workforce by an equivalent of some 25 jobs. ”Our current share of the global market for testing equipment is approximately 50 per cent. Although we believe that the market will continue to grow, and that we will continue to increase market shares, we must streamline our activities in order to retain future cash-flows. The impact on our staff has of course made this a very difficult decision,” said Christer Sjöström, CEO of AudioDev. Audiodev will downsize its operations in Malmö, affecting primarily production and internal support processes. The R&D and sales units are likely not to be affected. Negotiations with union representatives will be initiated immediately. The restructuring process will not affect AudioDev’s strategy to expand business operations through complementary acquisitions. Contact us for more information: Christer Sjöström, Acting CEO and President Tel: +46 40 690 49 00 E-mail: christer.sjostrom@audiodev.com