Montreal-based Airborne Mobile, which was purchased by Japanese-based Cybird for more than $90 million in 2005, confirmed today that it has restructured the company, which includes a management buy-out, layoffs and the elimination of some of its divisions. In a letter sent to business partners, the company’s co-founders wrote that they have “orchestrated a management buyout from Cybird Holdings in Japan, and have regained full control over Airborne Mobile’s direction and destiny…That said, to ensure long-term viability and the creation of value to our shareholders and business partners, we have instituted a series of changes that while painful in the short-term, will serve to expand the Company’s focus on profitable product lines while maintaining its renowned creativity.”

Co-founder and President Andy Nulman said in an interview that the restructuring included laying off 27 of their 100 employees, and that they decided to no longer make mobile games and applications, which are costly to develop and hard to distribute. On the buy-out, Nulman said Cybird was interested in concentrating on its domestic businesses. He declined to say how much they paid, but said “We paid cash, and not a lot of it.” After the restructuring, the company will have a three-pronged approach: It will work with carriers, providing ringtones, graphics and other content, including SMS and MMS services; it will work with companies on their off-deck approach; and they’ll have some time to focus on future projects, which could include creating interactive experiences between people and their phones. In 2008, the company expects to record about $30 million in revenue, or about as much as last year, and get closer to profitability. “We eliminated some of the product lines that weren’t generating any of the money, and were draining all of our resources…If we keep costs down and revenues up, we’ll be in good shape. The first thing that you don’t want to happen is to have people assuming you’ve gone out of business. It’s not the case.”