TLGD ($26 up 3+ 43c vs 41c) to cut jobs, take charge, gives guidance
PITTSBURGH, April 19 (Reuters) - Tollgrade Communications (NasdaqNM:TLGD - news), a maker of test products for the cable and telecommunications industry, said on Thursday it would cut its work force by 80 jobs to streamline operations and reduce costs.
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Tollgrade expects to employ 296 people after the cuts, about the size of its work force at the beginning of 2000.
The company said it had originally expected 2001 revenue growth of 10 to 12 percent, but the economic slowdown has made it impossible to predict revenues beyond the second quarter.
Tollgrade expects the cuts to results in annual pre-tax savings of about $4.3 million, or about 20 cents per share, it said. On the other hand, it expects to post a charge of about $400,000, or two cents per share, in the second quarter for severance, outplacement and other related costs.
The company forecast second-quarter earnings per share of 27-33 cents, before the charge for layoff-related costs, on revenues of $20-$22 million.
Tollgrade said Chief Executive Chris Allison asked the board to reduce his salary by 20 percent effective immediately and eliminate any bonuses that would be payable to him for fiscal 2001.
Tollgrade's first-quarter revenue grew to $28 million from $22.4 million in 2000. Net income increased 10.2 percent to $5.8 million from $5.2 million in the year ago. Diluted earnings per share rose to 43 cents per share from 39 cents per share a year earlier.
Its shares rose $3.29 to close at $26.43 on Wednesday, up from a year low of $15.25
Tollgrade expects to employ 296 people after the cuts, about the size of its work force at the beginning of 2000.
The company said it had originally expected 2001 revenue growth of 10 to 12 percent, but the economic slowdown has made it impossible to predict revenues beyond the second quarter.
Tollgrade expects the cuts to results in annual pre-tax savings of about $4.3 million, or about 20 cents per share, it said. On the other hand, it expects to post a charge of about $400,000, or two cents per share, in the second quarter for severance, outplacement and other related costs.
The company forecast second-quarter earnings per share of 27-33 cents, before the charge for layoff-related costs, on revenues of $20-$22 million.
Tollgrade said Chief Executive Chris Allison asked the board to reduce his salary by 20 percent effective immediately and eliminate any bonuses that would be payable to him for fiscal 2001.
Tollgrade's first-quarter revenue grew to $28 million from $22.4 million in 2000. Net income increased 10.2 percent to $5.8 million from $5.2 million in the year ago. Diluted earnings per share rose to 43 cents per share from 39 cents per share a year earlier.
Its shares rose $3.29 to close at $26.43 on Wednesday, up from a year low of $15.25. |
