Symmetricom to Shed Another 4%
This follows January's announcement of 100 job cuts (11 percent of the staff, at the time) at the San Jose, Calif.-based company, which provides timing chips for wireline and wireless networks and also offers video-monitoring gear. (See Symmetricom: It's Time to Cut Back .)
The earlier round was expected to reduce annual costs by about $7 million. The latest cuts will trim another $3.5 million but will produce restructuring charges in the range of $1.5 million to $2 million, most of which will be applied to Symmetricom's fourth quarter, which ends in June.
The company is sticking to its earnings projections, though. It's tightening up its revenue forecast, saying fiscal 2009 revenues will fall between $214 million and $219 million, as opposed to the earlier range of $212 million to $219 million.
Symmetricom isn't changing its non-GAAP earnings prediction of 35 cents to 40 cents per share for fiscal 2009. However, GAAP losses, thanks to the restructuring charges, are expected to widen to 95 cents to $1 per share, versus earlier expectations of 93 cents to 97 cents per share.
Analysts earlier expressed concerns about weak telco spending, particularly at AT&T Inc. (NYSE: T) and Verizon Communications Inc. (NYSE: VZ). However, they thought Symmetricom might be able to offset some of that with new cable business. (See Symmetricom Expands Cable Play.)
During its third-quarter conference call in May, Symmetricom president and CEO Tom Steipp said the company had "more than two dozen cable customers worldwide" for a network element timing mechanism that's key to the emerging modular cable modem termination system (M-CMTS) architecture. (See Symmetricom Nets M-CMTS Deal and CableLabs OKs First Modular CMTS Element .)
— Jeff Baumgartner, Site Editor, Cable Digital News