GERMANTOWN: Acterna Corp., the No. 2 US maker of communications testing
equipment, on Wednesday said it would cut 8 per cent of its work force to lower
costs amid the spending slump in the communications industry.
The Germantown, Maryland-based company said it plans to take a restructuring
charge of about $7 million to $9 million related to the 400 job cuts. The charge
will be in its fiscal fourth quarter of 2002 and in the fiscal first quarter of
2003.
Acterna, which currently employs about 5,000 people, last year announced it
would cut 1,000 jobs, resulting in annual savings of between $115 million and
$125 million. Acterna said the latest cuts would result in annual savings of
about $30 million.
Acterna, which ranks behind Agilent Technologies Inc. in network testing
equipment, said the job cuts would be achieved through consolidation, attrition
and early retirement. "We have been successful with our cost-management
efforts to date, and will continue to closely manage our business to return to
profitability," Acterna president and chief executive John Peeler said in a
statement.
Earlier this month, Acterna said new York private equity firm Clayton,
Dubilier & Rice told the company it may buy shares or other Acterna
securities on the open market in light of the recent low prices. Clayton,
Dubilier owns about 80 percent of Acterna's outstanding stock and in January
invested $75 million in company convertible notes.