SAN JOSE, Calif., June 18, 2013 /PRNewswire/ -- Symmetricom®,
Inc. (NASDAQ:SYMM), a worldwide leader in precision time and
frequency technologies, today announced a strategic restructuring
plan to improve operational and financial efficiency while
maximizing resources to support its growth initiatives. The company
also updated its financial outlook for its fiscal fourth quarter
ending June 30, 2013.
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The restructuring plan includes the realignment and
consolidation of several organizations, elimination of certain
activities, and a workforce reduction of approximately 12% of total
headcount. These actions are commencing immediately and are
expected to be complete by December, 2013. Symmetricom
expects to incur total charges in the range of $7.5 to $8.0 million in connection with the plan,
of which approximately $6.8 million
will be in cash. Upon completion, the company expects these actions
to generate annual cost savings of approximately $13 million.
"The steps we announced today are the result of a recent
comprehensive business review and reflect the driving of
efficiencies across our operations, while continuing to meet the
needs of our customers." said Elizabeth
Fetter, chief executive officer of Symmetricom. "The
overall business environment remains challenging as we face a
number of headwinds which we expect will continue into fiscal 2014.
These actions better position our business and demonstrate our
commitment to delivering solid profitability in the current
operating environment while continuing to invest in our key growth
initiatives. Since being appointed CEO, I have been meeting
directly with our employees and customers and have been impressed
with the technology depth and strong partnerships we have, which
provides a strong platform for long-term growth."
Symmetricom is updating its outlook for the fiscal fourth
quarter of 2013 as follows:
- Net revenue is expected to be approximately $51 million.
- As a result of the costs associated with the restructuring
action and the previously announced executive changes, GAAP
loss per share is now expected to be ($0.07) to ($0.04).
- Non-GAAP earnings per share is expected to be $0.05 to $0.07.
The company expects to report its fiscal fourth quarter and full
year 2013 financial results the week of August 4, 2013.
About Symmetricom, Inc.
Symmetricom (NASDAQ:SYMM), a
world leader in precise time solutions, sets the world's standard
for time. The Company generates, distributes and applies
precise time for the communications, aerospace/defense, IT
infrastructure and metrology industries. Symmetricom's
customers, from communications service providers and network
equipment manufacturers to governments and their suppliers
worldwide, are able to build more reliable networks and systems by
using the Company's advanced timing technologies, atomic clocks,
services and solutions. All products support today's precise
timing standards, including GPS-based timing, IEEE 1588 (PTP),
Network Time Protocol (NTP), Synchronous Ethernet and DOCSIS®
timing. Symmetricom is based in San
Jose, California, with offices worldwide. For more
information, visit: http://www.symmetricom.com or join the dialogue
at http://www.twitter.com/symmetricom.
Non-GAAP Information
Certain non-GAAP financial
information is included in this press release. In the
reconciliation of GAAP to non-GAAP results, Symmetricom excludes
certain items related to non-cash equity-based compensation,
acquisition-related costs, amortization of intangible assets,
executive transition costs and restructuring charges that the
Company does not consider indicative of its ongoing performance.
The income tax effect after these non-GAAP adjustments is
determined based upon Symmetricom's estimate of its annual non-GAAP
effective tax rate excluding these non-GAAP adjustments.
Symmetricom believes that excluding such items provides investors,
analysts and management with a representation of the Company's core
operating performance and with information useful in assessing, in
conjunction with GAAP results, underlying trends in operating
performance. Management uses such non-GAAP information to evaluate
financial results and to establish operational goals. Non-GAAP
information should not be considered superior to or as a substitute
for data prepared in accordance with GAAP. A reconciliation of the
non-GAAP results to the GAAP results is provided in the financial
schedules portion of this press release.
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 savings, fourth quarter fiscal 2013
guidance and future performance as well as the information
regarding the usefulness of the non-GAAP financial
information. The statements in this press release are made as
of the date of this press release, even if subsequently made
available by Symmetricom on its website or otherwise.
Symmetricom expressly disclaims any obligation to update or revise
any forward-looking statement contained herein, whether as a result
of a change in its expectations, a change in any events, conditions
or circumstances on which a forward-looking statement is based, or
otherwise. Symmetricom's actual results could differ
materially from those projected or suggested in these
forward-looking statements. Factors that could cause future
actual results to differ materially from the results projected in
or suggested by such forward-looking statements include, but are
not limited to, the risk that the costs associated with the
restructuring plan exceeds current estimates or that the Company is
unable to recognize anticipated cost savings associated with the
plan, the extent and magnitude of customer orders received and
shipped within the same quarter, risks relating to general economic
conditions in the markets we address and the telecommunications and
government markets in general, risks related to the development of
our new products and services, reliance on our contract
manufacturer, the effects of increasing competition and competitive
pricing pressure, uncertainties associated with changing
intellectual property laws or misappropriation of intellectual
property, developments in and expenses related to litigation, the
inability to obtain sufficient amounts of key components, the
rescheduling or cancellation of key customer orders, the loss of a
key customer, the effects of new and emerging technologies, the
risk that excess inventory may result in write-offs, price erosion
and decreased demand, fluctuations in the rate of exchange of
foreign currency, changes in our effective tax rate, market
acceptance of our new products and services, technological
advancements, undetected errors, design flaws, defects in our
products or start-up manufacturing difficulties, the risks
associated with our international sales, potential short-term
investment losses and other risks due to credit market dislocation,
geopolitical risks and risk of terrorist activities, the risks
associated with attempting to integrate other companies and
businesses we acquire, 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 July 1, 2012
and subsequent Forms 10-Q and 8-K.
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SYMMETRICOM,
INC.
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RECONCILIATION OF
FORWARD-LOOKING GUIDANCE FOR NON-GAAP FINANCIAL MEASURES
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TO PROJECTED GAAP
EPS
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(In thousands, except
per share amounts)
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(Unaudited)
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|
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Three Months
Ending June 30, 2013
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Earnings / (Loss) Per
Share from Continuing Operations
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From
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To
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GAAP
Guidance
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($0.07)
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($0.04)
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|
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Estimated Non-GAAP
Adjustments
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Equity-based
compensation expense
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$0.05
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$0.05
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Amortization of
intangible assets
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$0.01
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$0.01
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Executive
transitions
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$0.03
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$0.03
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Integration and
restructuring charges
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$0.09
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$0.08
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Income tax effect of
non-GAAP adjustments
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($0.06)
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($0.06)
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Total Non-GAAP
Adjustments
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$0.12
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$0.11
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|
|
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Non-GAAP
Guidance
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$0.05
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$0.07
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Contact:
Justin Spencer
Chief Financial Officer
+1-408-428-7801
jspencer@symmetricom.com
SOURCE Symmetricom, Inc.