UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM
CURRENT REPORT
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Item 2.05. Costs Associated with Exit or Disposal Activities.
On December 11, 2019, the Board of Directors of Boingo Wireless, Inc. (the “Company”) approved a plan to restructure the Company’s business operations to drive long term sustainable revenue growth, better align resources, improve operational efficiencies and to increase profitability. Upon the completion of this plan, the Company’s management and employees will be solely focused on managing its key businesses of (i) providing services to the wireless carriers, (ii) generating business on military bases and (iii) growing the Company’s multifamily business, in addition to managing the profitability of the Company’s legacy businesses such as retail and advertising. As part of this business realignment plan, the Company will eliminate approximately 80 positions, or 16% of its workforce. The Company expects to record a restructuring charge during the quarter ended December 31, 2019 of approximately $2.2 million, primarily related to employee severance and benefit costs. Affected employees have received notification and are eligible to receive severance payments based on their responsibilities within the organization and years of service, contingent upon an affected employee’s execution (and non-revocation) of a separation agreement, which includes a general release of claims against the Company. Overall, the Company expects that the workforce reduction will decrease operating costs by approximately $11.0 million on an annualized basis. The actions associated with this restructuring are anticipated to be completed in early 2020. It is anticipated that the related cash payments will occur by the end of March 31, 2020.
This Item 2.05 contains “forward-looking statements” that are based upon the beliefs of, and assumptions made by, the Company’s management, as well as information currently available to management. These forward-looking statements reflect the Company’s current views with respect to future events and are subject to certain risks, uncertainties, and assumptions. A number of important factors could cause actual results or events to differ materially from those indicated by such forward-looking statements. A further description of the risks and uncertainties relating to the Company’s initiatives, business and operations is contained in the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2018, filed with the Securities and Exchange Commission (the “SEC”). The Company does not intend to update these forward-looking statements, except as otherwise required by law. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
BOINGO WIRELESS, INC. | ||
Date: December 13, 2019 | By: | /s/ Peter Hovenier |
Peter Hovenier Chief Financial Officer |
Cover |
Dec. 11, 2019 |
---|---|
Cover [Abstract] | |
Document Type | 8-K |
Amendment Flag | false |
Document Period End Date | Dec. 11, 2019 |
Entity File Number | 001-35155 |
Entity Registrant Name | BOINGO WIRELESS,INC. |
Entity Central Index Key | 0001169988 |
Entity Tax Identification Number | 95-4856877 |
Entity Incorporation, State or Country Code | DE |
Entity Address, Address Line One | 10960 Wilshire Blvd. |
Entity Address, Address Line Two | 23rd Floor |
Entity Address, City or Town | Los Angeles |
Entity Address, State or Province | CA |
Entity Address, Postal Zip Code | 90024 |
City Area Code | 310 |
Local Phone Number | 586-5180 |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
Title of 12(b) Security | Common Stock, $0.0001 par value |
Trading Symbol | WIFI |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
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