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Veraz cuts one-third of staff, reorganizes

Fri, 08/01/2008 - 8:15am
Brian Santo

Veraz Networks has reduced its staff from about 460 to about 300, and the company is consolidating some operations as it struggles to regain profitability.

The company said it will provide details on its reorganization when it reports its second quarter earnings on Wednesday.

Veraz two weeks ago stated that it expects to report revenue of $15 million to $17 million for the quarter, or about half of the revenue recorded in the second quarter of 2007. It said it had acceptable bookings but that it wasn’t recording sales in an economic environment it called “challenging.”

Veraz went public last year. Its stock was originally sold at $8; after the news was reported, it fell to below $1, and today it was trading for between 83 cents and 89 cents.

The company provides Multimedia Generation Network application, control and bandwidth optimization products.

“While these workforce reductions are difficult for all involved, today's actions are necessary in light of the challenging business environment and enable us to maintain the financial strength of our business for the benefit of our customers, our employees and our shareholders,” said Doug Sabella, president and CEO of Veraz. “We believe that these restructuring initiatives will allow us to return to profitability, while taking advantage of growth opportunities and continuing to deliver product releases on schedule and providing superior support and service to our customers.”

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