Micronics to lay off 30 percent
As sales and government markets deteriorate, the troubled company is planning to chop its workforce by 30 percent.
For the third quarter ending June 30, the Micronics posted a net loss of $2.9 million, or 21 cents per share, compared to a net loss of $1.9 million, or 14 cents per share for the same period last year.
The staff reduction will be done under a new restructuring plan to go into effect in the company's fourth quarter ending in September. About $800,000 is expected to be saved.
Revenues also sunk to $22.3 million, down 34 percent from the $29.8 million recorded last year.
But the company has not given up hope just yet. Shanker Munshani, company president and CEO, said in a statement that Micronics continues to focus on new products to grow revenue while closely controlling costs. He noted that costs for the current year are down about $2.2 million from previous annual levels.
During the quarter, Micronics released two new systems boards, the Stingray and Dual Fortress. These boards incorporate Intel's 440FX PCI chipset and provide integrated MMX technology designed to enhance PC multimedia.
The company's stock, which peaked in June at 3-7/8 when it was in merger talks with Hayes Microcomputer, closed today at 2-1/4.
The negotiations with Hayes were severed before Hayes's merger with remote access firm Access Beyond in July. Micronics said it is still working to identify acquisition and strategic partner candidates.