Option eyes 29 mln eur in Q2 cost cuts

BRUSSELS, April 16 (BestGrowthStock) – Belgian wireless Internet
device maker Option (OPIN.BR: )(OPNVY.PK: )said it aims to have
realised 29 million euros ($39.6 million) in cost savings during
the second quarter of the year, it said in its annual report.

The company, which has suffered under fierce competition
from Chinese rivals Huawei Technologies [HWT.UL] and ZTE
(0763.HK: )(000063.SZ: ), said in its annual report it had had a
“very difficult year” in 2009.

It was loss-making in 2008 and 2009.

Option, which makes cards, USB sticks and embedded modems
for surfing the net on laptops, reduced operating costs by 20
percent during the second quarter of last year and launched a
second round of restructuring at the end of the year.

This second round, with further job cuts, product
rationalisation and greater focus of R&D, would result in a
further 17.2 million euros of annual savings, Option said in its
annual report released late on Thursday.

The overall result of the entire restructuring would reduce
the operational cost base by 29 million euros from the first
quarter of 2009 to the second quarter of 2010.

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($1=.7331 Euro)
(Reporting by Philip Blenkinsop; editing by Simon Jessop)

Option eyes 29 mln eur in Q2 cost cuts