Brief: CogState Announces Restructure That Will See About 13% Of Fulltime Workforce Exit Co

Cogstate

10/05/2023 02:30

May 10 (Reuters) - CogState Ltd  CGS.AX :
    * ANNOUNCED A RESTRUCTURE THAT WILL SEE APPROXIMATELY 13% OF
COMPANY'S FULLTIME WORKFORCE EXIT CO
    * ONE-OFF RESTRUCTURE COSTS OF A$0.6 MILLION WILL BE
INCURRED IN
CURRENT JUNE 2023 QUARTER
    * MOST OF HEADCOUNT REDUCTIONS COME FROM CLINICAL TRIALS
BUSINESS
UNIT
    * RESTRUCTURE REDUCING ANNUAL COSTS BY APPROXIMATELY A$2.6
MILLION
ONCE RESTRUCTURE IS FULLY IMPLEMENTED
    * FY23 REVENUE IS EXPECTED TO BE IN RANGE OF A$39M - A$41M
    * EXPECT COST REDUCTIONS WILL HELP US TO RESTORE CLINICAL
TRIALS
OPERATING MARGINS, AND TO DELIVER PROFIT GROWTH, IN 2024 FY
    * RESTRUCTURE WILL BE FULLY IMPLEMENTED, AND ALL RESTRUCTURE
COSTS
WILL BE FULLY ABSORBED, PRIOR TO 30 JUNE
    * FY23 EBITDA, FROM NORMAL OPERATIONS, EXPECTED TO BE IN
RANGE OF
A$3.5M - A$4.5M
    * OPERATING CASHFLOW FOR 2H23 IS EXPECTED TO BE IN RANGE OF
LOSS
OF A$1.0M - PROFIT OF A$1.0M
    * SEES FY NET PROFIT BEFORE TAX, INCLUDING RESTRUCTURE COSTS
AND
INTEREST REVENUE, IN RANGE OF A$0.6M - A$1.6M

Source text for Eikon:  ID:nASX656SDx 
Further company coverage:  CGS.AX 

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