xG Technology, Inc. (Nasdaq: XGTI, XGTIW) is on track to record annual cost savings exceeding USD2.0m resulting from synergies realized by the acquisition of Integrated Microwave Technologies (IMT), the company said.
This is above the amount forecasted in February 2016 when the acquisition was concluded, and includes cost reductions that have already been recorded as well as ones that are still coming.
Among the areas where cost reductions have been and/or will be realized since IMT became a business unit of xG are the following:
Rightsizing of staff levels to align headcount with near and mid-term realizable revenue opportunities;
Efficiencies resulting from unification of the sales operations of the xMax and IMT business units under common sales management, which will provide savings of approximately USD175,000 annually.
In addition to driving cost savings, cross-training of personnel to provide integrated solutions incorporating both xMax and IMT products enables xG to identify and close on new business opportunities.
Based in Sarasota, Florida, and founded in 2002, xG Technology has created a broad portfolio of intellectual property that enables always-available, always-connected and always-secure voice, broadband data and video communications.