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Cross-functional cost management study groups met in each division throughout the third quarter, and group Directors implemented many of their recommendations. Sigma management is confident that it has reduced costs in several key areas without jeopardizing sales goals or product quality. |
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More radical restructurings now being managed with the long term in mind include the spin-off of Sigma Consulting and the cancellation of the Kappa product line; both will allow us to invest more heavily in core businesses in 1998 and beyond. |
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Sigma believes its stock price was been hurt by institutions' and funds' profit-taking, and by the fact that analysts' Q2 expectations were unrealistic. Sigma's investor relations team has been working with a respected outside agency to set analysts' expectations at a realistic level. |
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Because Sigma uses stock options as a key compensation tool, the Sigma Human Assets Group managed fourth quarter adjustments in compensation programs to bolster employee morale. |