Citing more capital-spending slowdowns, C-COR.net Corp. said Friday that it
will cut 700 jobs and consolidate a portion of its manufacturing facilities in
order to reduce costs further by year-end.
The broadband-network management and equipment firm also warned Wall Street
that it would record a higher-than-expected loss of 14 cents to 16 cents per
diluted share on revenues of between $39 million and $40 million for the third
quarter.
That news sparked a C-COR.net stock sell-off as shares closed Friday at
$6.62, down more than 16 percent.
'We are positioning ourselves for the future, when capital spending
rebounds,' C-COR.net president and CEO David Woodle said during a conference
call.
Woodle added that the slowdown has grown beyond a one-quarter event. Over the
past week, other large companies in the telecommunications-equipment sector --
such as Motorola Inc., ADC Telecommunications Inc. and Nortel Networks -- have
also withered under similar strains resulting in large layoffs.
C-COR.net reiterated that operators have either slowed their capital
spending, delayed rebuild efforts or temporarily turned off the spending
spigot.
C-COR.net's MSO customer base includes Adelphia Communications Corp.,
AT&T Broadband, Time Warner Cable, Cox Communications Inc. and Rogers Cable
Inc., among others.
Friday marked the second time this year that C-COR.net has announced
work-force reductions. In January, the company said it would lay off 300
employees, or about 15 percent of its entire work force.
The latest layoffs, which include attrition and the elimination of open
positions, will boost that figure to about 37 percent.
Moreover, C-COR.net will fold its manufacturing facility in Tipton, Pa., and
its service support center in Atlanta into its larger building in State College,
Pa.
C-COR.net estimated that the restructuring will result in a charge of between
$10 million and $12 million.
In the meantime, Woodle said, the company will focus on broadband-network
tools and services. On that note, C-COR.net announced Thursday that it would
acquire MobileForce Technologies Inc.
