Network Equipment Technologies Announces Preliminary Third Quarter Financial Information and Reduction in Workforce
06 Gennaio 2009 - 10:23PM
Marketwired
Telecommunications equipment maker Network Equipment Technologies,
Inc. ("NET") (NYSE: NWK), announced today it expects revenue for
the third quarter of fiscal 2009 to be flat to up 5%, as compared
to the second quarter of fiscal 2009. The company also announced a
reduction in its workforce, leaving the company with approximately
255 employees as compared to 295 at the end of the second quarter
of fiscal 2009.
Third quarter fiscal 2009 income will include approximately
$18.8 million of gains related to the early retirement of the
company's convertible debt. This gain includes previously disclosed
amounts as well as gains related to additional repurchases late in
the quarter. NET now has outstanding $13.0 million of its 3 3/4%
convertible debt and $23.7 million of its 7 1/4% convertible
debt.
NET will record charges in the third quarter of fiscal 2009 of
up to $1.5 million related to the write-off of idle facilities and
severance charges related to employee terminations that took place
in the quarter. NET also expects to take charges in the fiscal
fourth quarter of more than $500,000, primarily related to employee
severance for actions taken at the beginning of the fiscal fourth
quarter.
During the third quarter of fiscal 2009, NET used $23.1 million
for the repurchase of convertible debt. The company expects to
report cash and investment balances as of the end of the quarter of
approximately $100 million.
"In the fiscal third quarter, we saw an increase in government
revenue that offset decreased international revenue, as commercial
sales globally declined as a result, at least partly, of the
economic crisis and the stronger dollar," said C. Nicholas Keating,
President and CEO. "Although we have seen modest overall growth in
our revenue these past two quarters, we believe that the uncertain
economy and continued delays in some government programs may affect
our customers' spending through the first half of calendar
2009."
"We continue to be conservative with our spending," continued
Keating. "Following the integration of Quintum operations, we have
reduced a number of redundant functions. We have also more tightly
focused our research and development activities. These actions will
help us to reduce expenses while also allowing our most strategic
product programs to receive increased funding."
NET expects to report its results for the third quarter in late
January or early February.
About Network Equipment Technologies, Inc.
Network Equipment Technologies, Inc. (NET) provides network and
VoIP solutions to enterprises and government agencies that seek to
reduce the cost to deploy next generation unified and secure
communications applications. For a quarter of a century, NET has
delivered solutions for multi-service networks requiring high
degrees of versatility, security and performance. Today, the
company's broad family of products enables interoperability and
integration with existing networks for migration to secure IP-based
communications. Broadening NET's voice solutions, Quintum
Technologies, now a part of NET, is a VoIP innovator whose
applications bring the reliability and clarity of public telephone
networks to Internet telephony and unified communications. NET is
headquartered in Fremont, CA and has 14 offices worldwide including
the US, the UK, France, the Middle East, China, Japan, Australia,
and Latin America. The company sells its solutions through a direct
sales force and an international network of resellers and
distributors. For more information, visit www.net.com.
Forward-Looking Statements
This press release contains forward-looking statements, relating
to possible future operating results, within the meaning of the
safe harbor provisions of Section 21E of the Securities Exchange
Act of 1934. Investors are cautioned that such statements are based
on current expectations, forecasts and assumptions that involve
risks and uncertainty that may cause actual results to differ
materially from those expressed or implied in the forward-looking
statements. Factors that could affect such results include federal
government budget matters and procurement decisions, global
economic conditions, currency exchange rates, the volume and timing
of orders and revenue, and product development achievements, as
well as the factors identified under the heading "Risk Factors" in
NET's Annual Report on Form 10-K for the most recent fiscal year.
The Company disclaims any intention or obligation to update or
revise any forward-looking statements, whether as a result of new
information, future events or otherwise.
Investor Contact: Leigh Salvo Email Contact (510) 647-8870
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