Company announces cost reduction initiatives

February 12, 2009

1 Min Read

BILLERICA, Mass. -- Soapstone Networks Inc. (NasdaqGM:SOAP - News) today reported results for its fourth quarter and fiscal year ended December 31, 2008.

The Company also announced that it has undertaken an initiative to reduce permanent headcount by approximately 10% and its contractor workforce by approximately 75%, while lowering certain discretionary spending to conserve cash. The Company expects to incur charges for severance and related costs of approximately $0.3 million in the first quarter of fiscal 2009 in connection with this action and anticipates overall cash savings of approximately $5.0 million during 2009 as a result of these reductions when compared to the expense run rate in the fourth quarter of 2008. The actions related to this initiative are expected to be completed in the first quarter of 2009.

"We are taking the critical steps necessary to right size our business in the current economic environment," said Bill Leighton, Soapstone's CEO. "While we are disappointed that the PBT market has been delayed, we continue to see strong interest in the overall Carrier Ethernet market, with the PNC deployed in a Tier 1 Carrier's lab during the fourth quarter."

Soapstone Networks Inc. (Nasdaq: SOAP)

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like