Sirit plans to achieve cash flow neutrality

Filed in archive Market Overview on October 31, 2006

RFID reader manufacturer Sirit announced last week at the EPCglobal conference in Los Angeles its plans to achieve cash flow neutrality by the fourth quarter of fiscal 2007. It will layoff over 25% of its staff, close two locations, and focus its product development efforts on those opportunities that promise near-term revenue.

According to RFID Update, the company has recently been through a period of heavy spending, as it integrated two acquired companies and invested in the development of key products. In February, the company bought TradeWind Technologies, a manufacturer of High frequency RFID readers that served the contactless payment, asset management, and closed-loop application markets, and in April it snapped up the assets of SAMSys, the struggling ultrahigh frequency RFID reader manufacturer that served the supply chain market. The company says it will take a one-time $400,000 hit for expenses related to the layoffs and location closures.