Wireless broadband provider SR Telecom Inc. is consolidating all of its research and development projects in Montreal in an effort to cut base costs after a major telecommunications acquisition. The restructuring comes in the wake of SR Telecom’s acquisition of Netro, a formerly California-based wireless broadband provider, last September (RoW, March 31/03). While SR Telecom had "absorbed the impact" of the merger by December, according to CFO David Adams, lowering the company’s break even point is a matter of financial prudence. The Netro acquisition gave SR Telecom market reach that it didn’t previously possess through its existing product portfolio. Following the purchase announcement last year, the company stated that it could now enter the urban market segment with a broader portfolio of equipment in the 1.9 to 3.5 GHz and 10 to 39 GHz ranges. SR Telecom president and CEO Pierre St-Arnaud said at the time of the Netro purchase announcement that the two companies’ products were complementary. "For us, Netro represents an ideal fit," he said during a conference announcing the acquisition last year. Few details have been released about the specifics of the company’s plan. SR Telecom said, though, that its research facility located in Redmond WA, is slated for closure. As a result, Adams says that SR Telecom is "securing key technicians and resources," who will be transferred to Montreal. The company, which provides services in over 120 countries, also has engineers overseas. It is currently in negotiations with the workers’ council in France over 36 jobs. There will be no new engineering projects there and its French programs are being moved to Montreal, as well. As part of its "global adjustment" plan, Adams says, "(the reconstruction) is impacting our organization all around the world." Maintaining a foothold in Europe is also an important SR Telecom objective, according to Adams. Holding major contracts with countries such as Spain and the Czech Republic he says, "It is fundamental to have a significant presence in Europe." Although the figures have not yet been released, SR Telecom says it will "significantly reduce its cost base" and be profitable by the end of the fourth quarter. More details will be released on May 12 with their first-quarter results.