Syntax-Brillian cuts jobs, plans to streamline operations

The Tempe, Ariz.-based company, which has had trouble financing its operations in the face of declining TV sales, said the effort is "designed to drive efficiencies and better match the company's resources to its long-term growth plan."

The move came hours after the company said it will likely have to restate its financial statements for 2007 and the first quarter of 2008.

The maker of Olevia high-definition TVs, Vivitar cameras and other consumer electronics did not specify how many jobs would be cut, but said the eliminated positions will represent overhead savings of about 20 percent, or about $4 million in operating costs per year. In a regulatory filing from June 30, the company said it had about 300 employees.

Other initiatives are designed to simplify the company's network of suppliers and narrow its distributor base. The company did not say how many suppliers or retailers would be affected.

Calls to the company seeking comment were not immediately returned.

President and Chief James Li, who earlier this month cut his salary to $1 a year to signal his commitment to turning the company around, said the steps were necessary to move the company "into the next stage of its growth."

"By focusing on those customers that best match our brand attributes we can better position the company for sustained controllable growth in the future," he said in a statement.

Earlier in the day, Syntax-Brillian said in a filing with the Securities and Exchange Commission that it will likely need to restate recent financial reports after evaluating how it accounted for certain deposits with a manufacturing partner. Syntax-Brillian also said it is reviewing certain sales transactions with distributors in Asia.

The company said it did not know what effect the restatements might have or when the review would be completed, but that shareholders should no longer rely on the reports in question.

Syntax-Brillian shares, which have tumbled nearly 70 percent since the start of the year, fell a penny to close at 99 cents. Shares traded as high as $8.70 in May.