Symmetricom Announces Cost Reductions to Further Streamline Operation
12 June 2009 - 10:00PM
Business Wire
Symmetricom, Inc. (NASDAQ: SYMM), a worldwide leader in precise
time and frequency technologies that accelerate the deployment and
enable the management of next generation networks, today announced
cost reductions as part of an ongoing effort to further streamline
the business and enhance its operational business model.
Symmetricom plans to eliminate approximately 30 positions or
about 4% of the company's total workforce by the end of the
calendar year and incur associated restructuring charges in the
range of $1.5 to $2.0 million. Symmetricom expects to record the
majority of the restructuring charges in the fourth quarter of
fiscal 2009. Upon completion, Symmetricom expects the restructuring
to reduce annual costs by approximately $3.5 million.
"This recent action is part of our continued effort to align our
operating cost structure with our long term profitability goals,"
said Thomas Steipp, president and CEO. "The company remains on
track to meet its revenue and non-GAAP earnings guidance for fiscal
2009."
Revenue and EPS Guidance
Symmetricom�s guidance for Fiscal 2009 is updated as
follows:
- Net revenues are now expected to
be in the range of $214 million to $219 million compared to
previous guidance of $212 million to $219 million.
- As a result of the additional
restructuring charges, Symmetricom now expects a GAAP loss in the
range of $(1.00) to $(0.95) per share compared to previous guidance
of a GAAP loss in the range of $(0.97) to $(0.93) per share.
- Non-GAAP earnings projections
remain unchanged. Symmetricom continues to expect non-GAAP earnings
in the range of $0.35 to $0.40 per share.
Fiscal fourth quarter 2009 guidance is updated as follows:
- Net revenues are now expected to
be in the range of $53 million to $58 million compared to previous
guidance of $51 million to $58 million.
- As a result of the additional
restructuring charges, Symmetricom now expects GAAP earnings to
range from a loss of $(0.01) to earnings of $0.04 per share
compared to previous guidance of GAAP earnings in the range of
$0.01 to $0.06 per share.
- Non-GAAP earnings projections
remain unchanged. Symmetricom continues to expect non-GAAP earnings
in the range of $0.05 to $0.10 per share.
A reconciliation of GAAP and non-GAAP guidance is provided at
the end of this press release.
About Symmetricom, Inc.
As a worldwide leader in precise time and frequency products and
services, Symmetricom provides �Perfect Timing� to customers around
the world. Since 1985, the company�s solutions have helped define
the world�s time and frequency standards, delivering precision,
reliability and efficiency to wireline and wireless networks,
instrumentation and testing applications and network time
management. Deployed in more than 90 countries, the company�s
synchronization solutions include primary reference sources,
building integrated timing supplies (BITS), GPS timing receivers,
time and frequency distribution systems, network time servers and
ruggedized oscillators. Symmetricom also incorporates technologies
including Universal Timing Interface (UTI), Network Time Protocol
(NTP), IEEE 1588 (Precision Time Protocol), and others supporting
the world�s migration to Next Generation Networks (NGN).
Symmetricom�s QoE video quality management solutions provide the
tools necessary to accurately monitor and analyze video quality and
bring higher satisfaction levels to the end user. Symmetricom is
based in San Jose, Calif., with offices worldwide. For more
information, visit http://www.symmetricom.com.
Safe Harbor
This press release contains forward-looking information within
the meaning of Section 27A of the Securities Act of 1933, as
amended, and Section 21E of the Securities Exchange Act of 1934, as
amended, and is subject to the safe harbor created by those
sections. These forward-looking statements include statements
concerning estimates of restructuring charges and annual cost
reductions and statements concerning profitability. Symmetricom's
actual results could differ materially from those estimated in
these forward-looking statements. Factors that could cause future
actual charges, cost reductions and results to differ materially
from the results projected in or suggested by such forward-looking
statements include: reduced rates of demand for telecommunication
products, cable products or test and measurement products, our
customers' ability and need to upgrade existing equipment, our
ability to reduce manufacturing and operating costs, timing of
orders, cancellation or delay of customer orders, loss of
customers, customer acceptance of new products, recessionary
pressures, geopolitical risks such as terrorist acts and the risk
factors listed from time to time in Symmetricom's reports filed
with the Securities and Exchange Commission, including the annual
report on Form 10-K for the fiscal year ended June 29, 2008 and
subsequent Form 10-Q's and Form 8-K's.
SYMM-F
� Symmetricom, Inc. RECONCILIATION OF FORWARD-LOOKING GUIDANCE FOR
NON-GAAP FINANCIAL MEASURES TO PROJECTED GAAP REVENUE AND EPS (In
thousands, except per share amounts) (Unaudited) � � �
Three
Months Ending June 28, 2009 Revenue Earnings (Loss) Per Share
From To From To �
GAAP Guidance $53,000 $58,000 ($0.01)
$0.04 �
Estimated Non-GAAP Adjustments Equity-based
compensation expense 0.02 0.03 Amortization of intangible assets
0.01 0.01 Integration and restructuring charges 0.07 0.07 Income
tax effect of non-GAAP adjustments � � (0.04) (0.04) Total Non-GAAP
Adjustments 0.06 0.06 � � � �
Non-GAAP Guidance $53,000
$58,000 $0.05 $0.10 � � � �
Twelve Months Ending June 28,
2009 Revenue Earnings (Loss) Per Share From To From To �
GAAP Guidance $214,000 $219,000 ($1.00) ($0.95) �
Estimated Non-GAAP Adjustments Equity-based compensation
expense 0.08 0.08 Amortization of intangible assets 0.04 0.04
Integration and restructuring charges 0.22 0.22 Impairment of
goodwill 1.10 1.10 Loss on repayment of convertible notes 0.01 0.01
Loss on short-term investments, net 0.03 0.03 CEO post-employment
compensation 0.02 0.02 Income tax effect of non-GAAP adjustments �
� (0.16) (0.16) Total Non-GAAP Adjustments 1.35 1.35 � � � �
Non-GAAP Guidance $214,000 $219,000 $0.35 $0.40
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