RadiSys Reiterates Q2 Guidance and Provides Details on Restructuring and Other Charges

6/10/2002 - RadiSys Corporation (Nasdaq: RSYS) announced today that it is still comfortable with its original Q2 guidance of revenue and a net loss similar to that of last quarter but is taking additional actions to improve its cost structure. These actions will result in a restructuring charge this quarter in the range of $5 to $6 million. The cash component of the charge will be about $5 million. The identified actions are expected to result in quarterly savings of about $2.5 million once fully implemented in Q4 of this year. The restructuring charge will include net workforce reductions of approximately 80 employees, consolidating the Houston, Texas design center to other sites and consolidating some of the sales and service offices. "I believe the actions we are taking will assist us in our goal to be profitable at current revenue levels by Q4 of this year," stated Ron Dilbeck, CEO. "We also believe that the actions we are taking will maintain our current level of focus and attention on our strategic investments. These current reductions mainly eliminate redundant infrastructure, thus we don't anticipate these actions jeopardizing any projects or revenue streams."

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