The company continues to be financially constrained and the liquidity will remain tight in 2017.
Tecnotree cost savings plan is to reduce personnel costs by 5.0 million euros, representing 100 man years was commenced in 2016 and the full impact will be realized in 2017.
Given the current critical financial situation of the company, Tecnotree will plan to further reduce operating expenses in 2017 to the tune of an additional 5 million EUR. We will plan to achieve this goal through further reductions in real estate rentals, travel and accommodation cost, consolidation of branch operations, reduction of outsourced services and additional savings in personnel costs.
We will continue to minimize currency exchange risks and withholding taxes by initiating actions to further improve our current structures and processes.
We will continue increased focus on ensuring timely collections of receivables by further improving the quality and timeliness of our deliveries.
Results are subject to quarterly variations and seasonality.
Tecnotree will continue its debt payment program according to the debt restructuring plan. Given the above uncertainties, Tecnotree does not provide an annual outlook.