In view of the current economic situation, the company has decided to focus resources on supporting its core video security business.
Pelco president and CEO Dean Meyer explained: “As the general economic outlook continues to worsen, and as forecasts call for a prolonged challenge throughout 2009, we as a company are forced to continually adapt to market demands. In response, we have initiated the necessary planning to exit the electronic access control business. This decision requires that we explore the options to sell or spin-off the Intelli-M business, and close the EAC business in its entirety.”
Indianapolis facility to close down
Management further noted that these options are being explored and that, regardless, the company will be closing its Indianapolis facility. In the main, this houses the resources for its access control development along with elements of general product support and training.
Meyer continued: “As we’ve indicated on numerous occasions, we are forced to monitor the market and be prepared to make difficult decisions swiftly in response to whatever challenges with which we’re presented. This is another such decision, but one that is necessary for us to maintain focus on efforts that are expected to best help Pelco weather the economic storm.”
According to management, employees impacted by this decision have been informed, and those placed on layoff status will be offered severance, outplacement and counseling services. Likewise, Pelco will provide additional information to its customers on future plans for product support, warranty and repairs, etc within the next 30 days.
Associated support costs
“I would like to thank all of the employees in Indianapolis, as well as those throughout the company who have supported our Intelli-M business over this past year,” concluded Meyer. “Even though excellent progress has been made in the product offering and toward future releases, we must consider the realistic timing of future sales growth and the associated support costs between now and then. I would ask for everyone’s backing and understanding in relation to this difficult decision,” said Meyer.
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