SmartPros Ltd. (SPRO) Plans to Cut Staff

June 16, 2014 4:18 PM EDT

SmartPros Ltd. (Nasdaq: SPRO) today announced upcoming changes in its operations.

Allen Greene, SmartPros' Chairman and CEO stated:

In light of current and near term market conditions, over the last several months we have been reviewing the Company's performance from both an operational perspective and the yields from our customers. We felt it appropriate to share with you our current direction, along with our ongoing commitment, in finding ways to enhance shareholder value. As a result of this review we have adopted what we are calling a "Back to Basics" approach.

We intend to reduce staffing in certain areas, and either close, sell or reduce certain verticals of our business that are not profitable, and to re-purpose resources to areas of our business that we believe will contribute most towards our profitability and future growth.

These changes may result in a decrease in near-term revenue, but we believe that it will correspond with an increase in profitability and further potential for long-term growth.

Specifically, we will be investing a portion of our savings in expanding our sales force as well as lead generation and direct marketing activities. Because the sales cycle for our products can be several months, we expect to see the full benefit of these changes take hold during the 2015 fiscal year.

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