By: Jim Rosenberg In Creo Inc.'s third-quarter earnings report, CEO Amos Michelson said his company will consolidate operations by moving the Creo Americas subsidiary's headquarters from suburban Boston to its corporate headquarters in Burnaby, British Columbia.
Citing "a very competitive market" and "cost pressures from the strength of the Canadian dollar and Euro," Michelson said the move -- expected to cut costs, streamline management and improve efficiency -- is part of "thorough review of our cost structure and spending priorities."
About half the 140 Boston-area positions will relocate to the headquarters near Vancouver, according to a Creo spokeswoman. Leadership and supporting teams for customer support, sales and service, however, will continue to operate from the Billerica, Mass., office. Research and development and manufacturing personnel based near Boston also are unaffected.
The change is expected to be fully implemented by the middle of fiscal year 2005, at which time it will reduce operating expenses by $2 million per quarter, according to the spokeswoman.
Year to year, third-quarter revenue rose 8.8%, to $156.2 million (U.S.), with a net loss of $1.6 million, compared with profit of $2.7 million a year earlier. Contributing to the loss were foreign exchange effects and a restructuring expense.
Consumables revenue rose 23% above the second-quarter figure and 77.5% above the previous third quarter.
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