Corvis Lays Off
The company stated that the business restructuring would be completed by year-end. The company said it expects to reduce its total workforce from approximately 1,400 employees to approximately 1,200.
"As we continue to position the company for profitability by the middle of 2004, we have decided to further realign and integrate our business to better reflect the current market realities," said Dr. David Huber, Corvis Chairman and CEO. "While these steps are never easy, they are necessary for the long- term success of the company. I want to personally thank every Corvis employee who will be leaving as part of this initiative for their tremendous contribution, dedication and commitment to the company and wish them every success in the future."
The company expects to take restructuring charges associated with this initiative in its third and fourth fiscal quarters ending September 30, 2003 and December 31, 2003, respectively.
"With the steps we've announced today, we expect to reduce our quarterly operational burn by approximately $7 - $10 million per quarter," said Lynn D. Anderson, Corvis' chief financial officer and treasurer. "Given our current view of the business, we now expect to end fiscal 2003 with approximately $275 - $300 million in cash, cash equivalents and short-term investments. We will continue to look for ways to grow the business and strengthen what is one of the strongest balance sheets in the industry. A balance sheet that remains un- levered with no significant debt and a solid cash position."
The company said it would discuss additional details of this business restructuring on its next quarterly earnings conference call on October 30, 2003.