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IMagicTV cuts 25% of workforce

11/7/2002

Saint John, N.B. - IMagicTV, which makes software that enables companies to deliver visual media over phone lines, announced Thursday it is cutting 31 jobs -- 25 per cent of its workforce -- as it scrambles to save money.

The high-tech firm will be left with 97 employees, down from 128, with 83 at headquarters in Saint John. IMagicTV also has offices in Cambridge, England, and in ngapore.

The cuts and other moves are expected to result in an annualized saving of about $4.2 million, but the company will post a one-time restructuring charge of $1.8 million for its third fiscal quarter ending Nov. 30.

"We are maintaining a strong team of professionals with the next generation of our software nearing completion," chief executive Gerald Pond said in a release.

"We remain committed to satisfying our customers' requirements and will continue to maintain our position of strength in research and development."

IMagicTV announced Oct. 24 it was studying "strategic alternatives for the company," the usual signal that a firm is for sale.

On the Toronto stock market Thursday, the company's shares (TSX:IMT) traded at $1.16, unchanged. The 52-week high is $1.74 and the low is 52 cents.

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