CoSine makes cuts to conserve cash
CoSine Communications Inc. is a smaller fish in a big pond, and to avoid getting eaten by a bigger fish like Cisco Systems Inc. or Nortel Networks, the company is looking to save some cash by cutting 45 percent of its work force.
To save as much as $9 million per quarter on operating expenses — compared to the first quarter, the network equipment maker is cutting roughly 190 jobs, reducing development spending and consolidating sales and marketing staffs. The savings will enable the company to sustain its business during the economic slowdown plaguing the industry, according to CoSine.
The company recently inked a deal with Sprint for the development of its networ-based VPN services. WorldCom also is a CoSine customer.
As of March 31, CoSine had $151 million in cash and short-term investments.