Ouster (OUST) Announces Cost Reduction Plan

Ouster, Inc. (NYSE: OUST) announced a comprehensive cost reduction initiative across its business, streamlining its cost structure and extending its expected cash runway.

“We are laser-focused on bolstering our path to profitability and minimizing capital requirements. These efforts, coupled with our industry-leading margins, focused growth, and robust product roadmap, especially the upcoming launch of the L3 chip, keep us on that path,” said Ouster CEO Angus Pacala.

In its last earnings call, Ouster announced three pillars to strengthen its financial position: strategic fundraising, targeted spend, and accelerated growth. In addition to actions in the second quarter, the Company is executing a multi-pronged strategy to reduce gross cash spend across operational expenditures, capital expenditures, and inventory, targeting $107 million in gross cash spend in 20231. This represents a reduction of more than 15% compared to annualized gross cash spend based on the second quarter 2022. Specifically, the Company is reducing operational expenditures through budget realignment and an approximately 10% workforce reduction, optimizing capital expenditures, and improving working capital through inventory and build plan adjustments.

These efforts, coupled with additional steps to accelerate market share capture through product releases and targeted commercial strategies, provide Ouster with the flexibility to execute on its business plan. In addition to the actions above, the Company suspended sales of common stock through its at-the-market (“ATM”) offering.

“Ouster is well-positioned to emerge as the market leader this year. We continue to deliver best-in-class hardware, capture market share, progress toward achieving product and safety specific certifications, and build a robust software ecosystem to expand our addressable market,” said Ouster CFO Anna Brunelle. “We identified areas of the business where we can operate with greater efficiency, allowing us to further execute on our strategic initiatives and deliver high-performance products to our hundreds of customers in order to bolster our path to profitability.”

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