Hayes still struggles after Chapter 11
Hayes Microcomputer Products reports a widening loss for the third quarter and declining revenues as the company tries to regroup after emerging from bankruptcy earlier this year.
Hayes reported a net loss of $9.1 million for the quarter ending September 30, compared to a loss of $8 million a year ago. The company took a one-time $6.5 million restructuring charge in the third quarter this year, though, to account for the closure of its California plant.
The modem maker said last month it would close a manufacturing facility in California and consolidate its operations in Norcross, Georgia. That move resulted in layoffs of up to 375 workers.
Third-quarter revenues fell 23.6 percent to $55.2 million, down from $72.3 million a year ago.
Company officials attributed this decline to lowering the price of its products remaining in inventory and in the market.
"The September quarter was an important rite of passage in creating the Hayes comeback," said Joseph Formichelli, president and chief executive, in a statement. "It was our first full quarter following our emergence from Chapter 11 reorganization." The company emerged from bankruptcy last March.
As the company steps forward, it has transformed all its general purpose modems to a 33.6-kbps standard and was the first modem maker to announce its support for a 56-kbps speeds over standard phone lines.