Symmetricom announced a strategic restructuring plan and updated financial guidance for its fiscal fourth quarter ending June 30, 2013.
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.
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.”
- In April, Symmetricom named Elizabeth A. Fetter as its new CEO, replacing David G. Cote, who left to pursue other interests. The company also announced that Robert T. Clarkson has stepped down as chairman of the board of directors and that James Chiddix has been elected to succeed Mr. Clarkson as chairman. Fetter has previously served as President and CEO of several private technology start-up companies, including QRS Corporation. She served as President, Chief Executive Officer and a director of NorthPoint Communications, a network services company, from 1999 to 2001. Ms. Fetter previously was Vice President and General Manager of the Consumer Services Group at U.S. West and held various senior executive positions at Pacific Bell.