Clarent, which builds technology that allows people to make phone calls over the Net, on Monday laid off 90 full-time workers and 20 contract or temporary workers. Overall, the company had more than 1,000 employees.
The Net telephony company, whose biggest customers are telecommunications service providers, also merged two business units: one that makes equipment for corporations and one that builds products for consumers and small offices.
Like other network equipment makers, Clarent has been hurt by the tepid economy and slower sales of equipment to telecommunications carriers. Clarent last month announced a first-quarter loss of $2.1 million, or 5 cents a share, on revenue of $61.2 million, but company executives toned down its revenue expectations for future quarters.
The company now expects second-quarter revenue to be flat on a year-over-year basis, while third- and fourth-quarter revenue will grow 3 percent to 5 percent. The company previously expected quarterly growth to reach 10 percent to 15 percent.
Clarent ranks third in sales of Internet telephony equipment to service providers, behind leaders Cisco Systems and Lucent Technologies. Of the $775 million in revenue that telecommunications service providers spent on Net telephony equipment last year, Cisco ranked first in market share with 27 percent, followed by Lucent with 18 percent, and Clarent at 13 percent, according to market research firm Synergy Research Group.
In other news Monday, Clarent announced that executive vice president Mark McIlvane has resigned, and Heidi Bersin, Clarent's senior vice president of corporate marketing, has retired.
Clarent's share price has plummeted from a 52-week high of $97.63 to $11.45.