(Reuters) - Hemisphere GPS Inc HEM.TO, which makes navigation systems, said it will exit its non-agriculture-related business and cut 38 percent of its total workforce.
The company, which appointed Rick Heiniger chief executive in September, said it expects to save $7 million annually from the restructuring. The total workforce will be reduced from 273 to about 170.
Hemisphere said diversification into marine, construction and other industries had increased costs, absorbed cash and distracted management focus from its core agriculture business.
The agriculture business contributed 81 percent of the company’s revenue in the first nine months of 2012.
The company, valued at $46.4 million, reported a wider quarterly loss and said it no longer expects to meet its target of 10 percent revenue growth in the year.
Net loss widened to $2.8 million, or 4 cents per share, in the third quarter, from $1.6 million, or 3 cents per share, a year earlier.
Revenue remained flat at $14 million.
Shares of the company closed at 70 Canadian cents on the Toronto Stock Exchange on Tuesday.
(Refiles to add dropped words “its total” in paragraph 1)
Reporting by Ankur Banerjee in Bangalore; Editing by Joyjeet Das