Fourteen years after it was founded, Denmark's Olicom A/S, a manufacturer of data networking solutions and switching products for telecommunications OEMs, is entering the final stage of its existence.
Wrapping up an undertaking it started earlier this month, Olicom is cutting more jobs and intensifying efforts to sell various business units as it moves to wind down its operations.
The company said today that several of its senior managers have left and that it expects payroll to drop from 576 as of the end of June to fewer than 100 by tomorrow.
In a statement today, the company said it had a loss of $89.6 million, or $5.01 per share, in the second quarter ended June 30, compared with a profit of $4.99 million, or 28 cents per share, in the second quarter of 1998. A major chunk of the loss was attributed to restructuring charges and the write-off of fixed assets. Sales during the period tumbled to $8.7 million from $65.07 million in the comparable prior period.
Olicom said it will relocate its headquarters to a facility adjacent to its current base in Denmark and close various offices in the United States and elsewhere.