Cutting 120 jobs will cut future cash expenses by about $2.5 million a quarter, Next Level Communications Inc. said today. The company announced the layoffs and lowered its Q4 guidance, citing slower-than-expected customer deployments.
The layoffs reduce the broadband access platform provider's workforce by one-third, it says, and are part of an ongoing effort to cut overhead costs.
The reduction comes on the heels of a 15 percent workforce reduction the company announced in its Q3 results in October.
"We are also evaluating additional intermediate financing alternatives," Chair and CEO J. Michael Norris said then. "Finally, we took the very difficult step of reducing our workforce by 15 percent, which, along with other cost-saving measures, will reduce our cash burn rate by approximately $2 million a quarter."
In mid-December, Next Level expanded its loan agreement with Motorola Inc. and added another $20 million to the $60 million agreement the two had.
In today's statement, Next Level says it will reach $12.4 million in revenue for the quarter, lower than previous projections.
Norris notes in a statement that the company is prepping for commercial deployment of its next-generation product line, prompting the streamlining efforts.
"We remain steadfast in our conviction that as economic conditions improve, telephone companies will increasingly turn to Next Level to help them expand their service offerings as well as protect their market share from the growing threat posed by cable companies," he says in a statement.
The company will announce its results later this month.