Symmetricom Inc. (SYMM), Tuesday announced a cost-cutting restructuring plan, that includes 12 percent job cuts. The company also lowered its outlook for the fourth quarter.
California-based Symmetricom said the restructuring process is expected to improve its operational and financial efficiency and at the same time maximize resources to support its growth initiatives.
The restructuring plan includes the realignment and consolidation of several organizations, elimination of certain activities, and a workforce reduction of about 12 percent of total headcount.
These actions are commencing immediately and are expected to be complete by December, 2013. Symmetricom expects to incur total charges of $7.5 to $8.0 million, of which about $6.8 million will be in cash. Upon completion, the company expects these actions to generate annual cost savings of about $13 million.
Going ahead, the company lowered its fourth quarter outlook. Symmetricom now expects loss of $0.07 to $0.04 per share, adjusted earnings of $0.05 to $0.07 per share and revenues to be about $51 million.
Previously, the company expects earnings $0.00 to $0.05 per share, adjusted earnings of $0.05 to $0.10 per share and revenues of $51 million to $57 million.
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