Business Services Industry
MicroTel Relocates CXR Telcom's Fremont Facility; Annualized Cost Reduction Should Total $325,000
Business Wire, Nov 20, 2002
Business Editors & High-Tech Writers
RANCHO CUCAMONGA, Calif.--(BUSINESS WIRE)--Nov. 20, 2002
MicroTel International Inc. (OTCBB:MCTL)("MicroTel") today announced that its subsidiary, CXR Telcom Corp., a manufacturer and designer of telecommunications test equipment, moved its operations this month to a less costly facility which is in the same general area of Fremont, Calif. as its previous facility.
The company estimates that this relocation will reduce facility costs by approximately $325,000 on an annualized basis.
Kevin Haug, president of CXR Telcom, said: "This move will result in a major cost reduction which is an important component of CXR's efforts to return to profitability. Also, our new facility is close to the former property which helped minimize the cost of the move. We believe that our new leased facility exceeds the functionality and appearance of our former facility at a far lower cost."
About MicroTel International
MicroTel International is an international manufacturer of defense and aerospace electronic components and telecommunications equipment.
MicroTel International's electronic components group, which includes XET Corp. and its international subsidiaries, provides custom power conversion products and digital switches to the electronic components global market primarily used for defense and aerospace applications.
MicroTel's telecommunications group, consisting of CXR Telcom and CXR S.A., provides testing, transmission, and network access equipment to the North American and European telecommunications industry. Founded in 1983, the company operates out of facilities in the United States, France, the United Kingdom and Japan.
As of Oct. 31, 2002, MicroTel International employed a total of 207 persons in its various subsidiaries and divisions.
Safe Harbor Statement Under the Private Securities Litigation
Reform Act of 1995
With the exception of historical information, the matters discussed in this news release are forward-looking statements that involve a number of risks and uncertainties. The actual future results of MicroTel could differ from those statements. Factors that could cause or contribute to such differences include, but are not limited to, the inability of MicroTel to return its CXR Telcom Corp. subsidiary to profitability, the inability to obtain the full expected reductions in cost due to the CXR relocation, unforeseen technical issues and those factors contained in the "Risk Factors" Section of the company's Form 10-K for the year ended Dec. 31, 2001.
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