SAN FRANCISCO Test equipment company Ixia plans to cut 75 to 80 jobs, or about 10 percent of the company's workforce, as part of a restructuring plan expected to save about $6 million per year, the company said Wednesday (June 10).
The staff reductions should be completed by June 30, Ixia said, with the exception of certain outside contractors who will be retained through July.
The company said it would record a charge for severance and other related costs of about $1 million on a pre-tax basis in the current quarter to reflect the impact of this restructuring. Ixia will also write down about $1 to $2 million of slow moving and impaired inventory in the second quarter, the company said.
"We are taking this action after much internal deliberation," said Atul Bhatnagar, president and CEO, in a statement.
Bhatnagar added, "We continue to be cautious about the economic outlook, and we think it is prudent at this time to align our operating costs with our business opportunities."
Ixia (Calabasas, Calif.) reiterated its revenue guidance of $35 million to $40 million for the second quarter. Excluding the impact of the restructuring expenses and of the inventory write-down and other non-cash charges, the company said it expects to report a non-GAAP loss or 2 to 3 cents per share. On a GAAP basis, it expects a loss of 5 to 10 cents per share.