ASX-listed tech player, Aurora Labs’ new board has wasted no time in implementing a cost saving program that is set to reduce annual expenditures by a whopping $6M a year. The cuts, which also include a paring back of executive pays and a lower overall head count, will see monthly overheads at the Perth based 3D metal printing specialist cut by 65 per cent.
It is just over a month since Aurora Labs executed a strategy to refresh its board in line with its vision to get set for the commercialisation of its 3D printing technology. Perth corporate finance player, Grant Mooney of Mooney & Partners corporate advisory took the Chair and former company COO, Peter Snowsill, moved into the interim CEO role.
The pair have taken the axe to the company’s cost base to sandbag it against the ravages of the coronavirus and the resultant amount will no doubt ease the pressure on the company to undertake large capital raises during this difficult period.
Based on a broad review, Aurora’s board said it would implement its cost saving program effective from May 1st this year with the goal of reducing the monthly cash burn down to $250,000, a massive two thirds reduction.
Executive pays haven’t been spared either with Mr Snowsill and Aurora’s Founder and now CTO, David Budge, taking a 25% and 35% haircut in their fixed remuneration. The board also said it would review pay and spending at all levels within the company in ninety days.
Staffing levels will also reduce by 65%.
Aurora said that there has been a pause in tradeshow activity in light of the current COVID-19 pandemic, reducing the potential for Aurora to focus on its principal commercialization initiatives and developing sales leads.
The company said it will take the opportunity to focus on its A3D general technology development, including its RMP-1 and Beta printer technological developments to improve performance.
Aurora Labs Chairman, Grant Mooney said: “These are challenging times due to the global impact from COVID-19, and the Board and senior management have spent a considerable amount of time in the last few weeks to review every aspect of the business. Regrettably, we’ve had to take some unfortunate cost-cutting measures, including a significant reduction to Aurora’s staff. The reduction in staff was taken heavy-heartedly and we will do our best to help our outgoing workforce during this period.”
“These measures are necessary to ensure Aurora remains in a stable financial position with low levels of cash burn and for the Company’s longer term position in the market.”
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