BEAVERTON, Ore., Oct. 12 -- Planar Systems Inc. is restructuring to help reduce operating expenses to a level consistent with current revenue expectations. The planned restructuring calls for Planar's sale of Planar Flat Candle, Inc., a wholly owned subsidiary that manufactures backlights for liquid crystal displays. Planar has also taken steps to reduce worldwide headcount by 18 positions, and has instituted a hiring freeze on all positions presently open. The company expects the restructuring actions to lead to annual cost savings of approximately $2.5 million.
Planar further announced that it expects net income for the fourth quarter and the fiscal year to fall below expectations. Although progress has since been made, the company's Planar Advance unit had experienced difficulties in the production of our military avionics displays and increased production costs, said Balaji Krishnamurthy, Planar Systems' president and CEO.