Devcon expects $1.2m savings from staff reduction
BOCA RATON, Fla.Ã¢â‚¬â€Calling it Ã¢â‚¬Å“a sign of progress for the company,Ã¢â‚¬Â Devcon International president Robert Farenhem on Jan. 9 announced the company expects to save $1.2 million in annual payroll and benefits expenses as the result of a workforce reduction.
DevconÃ¢â‚¬â„¢s wholly owned subsidiary, Devcon Security Services, cut 42 positions, approximately eight percent of its staff.
Ã¢â‚¬Å“The positions that were eliminated were a direct result of all of the consolidation and back office integration we were doing last year,Ã¢â‚¬Â Farenhem said. Ã¢â‚¬Å“ItÃ¢â‚¬â„¢s a good chance to get some efficiencies out of the acquisitions weÃ¢â‚¬â„¢ve made over the last couple of years,Ã¢â‚¬Â he said.
Last summer, Farenhem told Security Systems News that said Devcon was working on integrating six different databases and two different financial systems.
The project, he said, addressed Ã¢â‚¬Å“fundamental systems designed to improve customer service and operations as well as prospects for future growthÃ¢â‚¬Â (for more background, search Ã¢â‚¬Å“DevconÃ¢â‚¬Â at www.securitysystemsnews.com).
Devcon shed the last of its non-security-related businesses last year. In its most recent (Q3) financial statement, Devcon reported a slowdown in losses as the result of revenue growth. It lost $3.4 million (or 55 cents per diluted share) on revenue of $14.3 million. For the same period one year earlier, it lost $8.1 million on revenue of $13.8 million.