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Company announces margin enhancing initiatives
Initiation of improvements to stabilize the global cost structure
NUREMBERG, Germany, July 14, 2022--(BUSINESS WIRE)--VIA optronics AG (NYSE: VIAO) ("VIA" or the "Company"), a leading supplier of interactive display systems and solutions, today announced a series of cost containment and pricing initiatives designed to combat inflationary pressures and drive margin improvement in the second half of 2022 and beyond.
VIA is taking actions in the following areas:
Pricing: Further implementation of broad price increases to account for inflationary pressures related to labor, energy, transportation, and materials, starting in July 2022
Supply Chain: Consolidation of suppliers to optimize costs and achieve efficiencies of scale
Production Efficiencies: Initiation of improved cost structure due to full operating capacity at Nuremberg, Germany facility
Jürgen Eichner, Chief Executive Officer and Founder of VIA optronics AG, commented, "We are taking enterprise-wide actions to mitigate the impact of higher costs related to the inflationary environment and global supply chain challenges. These actions include both internal initiatives such as improving production efficiencies and streamlining resources, as well as measures related to customer pricing and supplier agreements. We are targeting breakeven net profit on a run-rate basis as we exit 2022. Overall, we believe these initiatives will help us restore our historical margin profile and position the Company for long-term sustainable profitability."
VIA is a leading provider of interactive display solutions for multiple end markets in which superior functionality or durability is a critical differentiating factor. Its customizable technology is well-suited for high-end markets with unique specifications and demanding environments that pose technical and optical challenges for displays, such as bright ambient light, vibration and shock, extreme temperatures, and condensation. VIA’s interactive display systems combine system design, interactive displays, software functionality, cameras, and other hardware components. VIA’s intellectual property portfolio, process know-how, optical bonding, metal mesh touch sensor and camera module technologies provide enhanced display solutions built to meet the specific needs of its customers.
Statements in this press release about future expectations, plans and prospects, as well as any other statements regarding matters that are not historical facts, may constitute "forward-looking statements." These statements include, but are not limited to, statements relating to the expected trading commencement and closing dates. The words, without limitation, "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "potential," "predict," "project," "should," "target," "will," "would" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these or similar identifying words. Forward-looking statements are based largely on our current expectations and projections about future events and financial trends that we believe may affect our financial condition, results of operations, business strategy, short-term and long-term business operations and objectives, and financial needs. These forward-looking statements involve known and unknown risks, uncertainties, changes in circumstances that are difficult to predict and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statement, including, without limitation, the risks described under Item 3. "Key Information—D. Risk Factors," in our Annual Report on Form 20-F as filed with the US Securities and Exchange Commission. Moreover, new risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this release may not occur and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements. We caution you therefore against relying on these forward-looking statements, and we qualify all of our forward-looking statements by these cautionary statements. Any forward-looking statements contained in this press release are based on the current expectations of VIA’s management team and speak only as of the date hereof, and VIA specifically disclaims any obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise.
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Investor Relations for VIA optronics:
Alpha IR Group
Phone: +1 312-445-2870