Syntax-Brillian shrinking work force, changing supply channels

Syntax-Brillian Corp. will be trimming its work force to save expenses as well as refocusing its retail and online connections as the company looks to better its market position after slumping recently.

The Tempe-based company (Nasdaq: BRLC), which makes high-definition televisions, announced Friday it would eliminate positions relating to about 20 percent of its overhead costs, with an annual savings of about $4 million. It also is looking at more targeted distribution through its retail partners, which currently number roughly 3,000 shops and online destinations.

"Today we are taking the actions that are necessary to move Syntax-Brillian into the next stage of its growth," said President and CEO James Li. "By focusing on those customers that best match our brand attributes, we can better position the company for sustained controllable growth in the future."

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The company has been struggling recently. It had a loss of $13.5 million for its first fiscal quarter of 2008, announced in November, in large part because it discontinued its liquid crystal on silicon business. It failed to meet forecasts, despite a significant increase in revenue.

Earlier Friday, Syntax-Brillian announced it would be restating its earnings for the 2007 fiscal year as well as the first quarter of 2008 because an audit revealed problems with its accounting related to tooling deposit accounting and sales transactions from some of its Asian distributors.

The company also is contesting a fine of nearly $1.3 million levied by the FCC for allegedly shipping televisions beyond a deadline for which all units had to be HD-compatible.

Other moves in the restructuring included Syntax-Brillian changing its supplier network, in part already announces earlier this month with its agreement with Compal Electronics to make 300,000 Olevia-brand models in 2008.