News: WSP Whispir Says Internal Restructure To Place Co On Track To Be Cash Accretive From Q3 Fy23

Nov 15 (Reuters) - Whispir Ltd (WSP) :

• INTERNAL RESTRUCTURE TO PLACE COMPANY ON TRACK TO BE CASH ACCRETIVE FROM Q3 FY23
• WILL SCALE BACK ITS INVESTMENT IN RESEARCH AND DEVELOPMENT, VIA A REDUCTION IN HEADCOUNT IN PRODUCT AND TECHNOLOGY TEAMS
• A TOTAL OF A$1.8 MILLION IS ANTICIPATED TO BE INCURRED AS A ONE-OFF RESTRUCTURING COST
• BOARD APPROVAL OF INTERNAL RESTRUCTURE REDUCES APPROXIMATELY 80 ROLES (30%) IN BUSINESS
• RESIZING OF BUSINESS EXPECTED TO REDUCE CO'S OPERATING CASH EXPENDITURE BY A$14.3 MILLION P.A. FROM DEC 2022
• ADDITIONAL COST REDUCTION WILL ENSURE CURRENT ANNUAL RECURRING REVENUE OF A$62 MILLION
• BUSINESS WELL POSITIONED TO SUCCEED IN CHALLENGING MARKET CONDITIONS
• WITH RESTRUCTURE, EXPECT CO WILL BE BOTH EBITDA POSITIVE AND CASH ACCRETIVE FROM NEXT QUARTER ONWARDS
• BUSINESS WILL NOT NEED TO RAISE CAPITAL TO FUND ITS ONGOING OPERATIONS AFTER RESTRUCTURE
• EXPECTED REVENUE GROWTH (ABOVE ARR) WILL GENERATE POSITIVE RETURNS WHICH WILL BE REINVESTED BACK INTO BUSINESS IN SHORT TERM