Actelis Networks launches restructuring to cut expenses by 20%

FREMONT, Calif. - Actelis Networks, Inc. (NASDAQ:ASNS), a networking solutions provider with a market capitalization of $5.47 million, announced Thursday it has begun an operational restructuring aimed at reducing expenses by approximately 20% by the end of 2025 while refocusing its sales strategy on profitable growth areas. According to InvestingPro data, the company has been facing profitability challenges, with revenue declining 12.53% over the last twelve months.

The networking solutions provider plans to streamline operations through AI implementation, outsourcing, and offshoring to lower-cost regions. The company will also minimize spending on facilities and general administration while introducing an optimized organizational structure.

"We are working to increase our customer focus while becoming more efficient in how we invest our resources," said Tuvia Barlev, Chairman and CEO of Actelis, according to the company’s press release. InvestingPro analysis reveals the company maintains a gross profit margin of 50.58%, though it currently faces cash flow challenges. For deeper insights into Actelis Networks’ financial health and future prospects, investors can access the comprehensive Pro Research Report, available exclusively on InvestingPro.

Key components of the reorganization include technology-enabled activity optimization across sales, R&D, and operations; improving operational efficiency through office consolidation and expanded offshore partnerships; shifting focus toward software development in network management and cybersecurity rather than in-house hardware development; and strengthening sales in high-growth verticals and regions.

The company recently hired a new Chief Revenue Officer focused on U.S. federal and local government sectors, along with a new Director of Federal Sales, indicating its targeted growth strategy.

Actelis Networks specializes in cyber-hardened networking solutions for IoT applications in government, transportation, military, utility, rail, telecom, and campus networks.

The restructuring plan is expected to be implemented gradually to ensure no disruption to customer service and ongoing sales operations. With the stock trading near its 52-week low of $0.45, InvestingPro offers additional insights through its 10+ ProTips and extensive financial metrics to help investors evaluate the company’s turnaround potential.

In other recent news, Actelis Networks has announced several significant developments. The company closed a private placement offering, raising approximately $1 million in gross proceeds. This offering included shares of common stock and warrants for additional shares. Additionally, Actelis Networks has decided to diversify its treasury management strategy by investing in cryptocurrencies. The company plans to allocate funds to digital assets that are ranked within the top 100 by market capitalization.

In another development, Actelis Networks received an order for its GigaLine technology from a European telecom carrier. This order is aimed at enhancing mobile base station backhaul over long distances, particularly in challenging areas for traditional fiber deployment. Furthermore, Actelis Networks appointed Mark DeVol as the Chief Revenue Officer Americas, bringing over 30 years of experience in the sector. These recent decisions and appointments reflect the company’s strategic moves to expand its operations and financial strategies.

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