As a listed company, one assumes that ZetaDisplay AB (publ) (Nasdaq Stockholm: ZETA) had no choice in announcing this, but official news (from them) reaches us that temporary layoffs, selected terminations and reduced travel and consultants’ costs are the order of the day in Malmö at the moment.
In their statement they said that in order to prepare for a weaker market demand in the coming months, the Group has initiated cost control measures and they stated that if the market situation continues to be demanding, ZetaDisplay intends to save up to ten percent of the Group’s total expenses during 2020 with an increasing effect on a twelve months basis.
Per Mandorf, President and CEO said “The Group’s business activities on all six European markets are ongoing with sufficient activity levels. We are working closely with our customers to keep the momentum going”, Mandorf says. The Group is completely invested in latest digital collaboration tools which allow the Group’s 160 employees at nine offices to handle customer assignments remotely even if some offices are affected by the employees’ physical absence due to government recommendations”.
“Our Digital Signage solutions play a vital role in customers’ digital transformation process and they are based on a revenue model with a large extent of recurring SaaS revenues. Additionally, we have secured our financing after having issued a 3.5-year senior unsecured SEK denominated bond of 300 million in September 2019”.