Another shift for NENG:
boston.internet.com
Network Engines Shifts Gears, Cuts 65 Jobs
By boston.internet.com Staff
Network Engines (NASDAQ:NENG), of Canton, Mass., has
slashed 65 jobs to cut costs and will shift its focus from custom
hardware and software development to the application server
market.
The moves should save the company $5 million in the first quarter
of 2002. Network Engines will take a restructuring charge of
about $7 million, about $4.5 million of which will be non-cash. It's
the second round of cuts for the company this year.
Network Engines will switch from direct sales to partnerships with
independent software vendors, resellers and original equipment
manufacturers.
"We have chosen to concentrate on our core competencies,
specifically packaging and integrating hardware platforms with
various operating systems, management systems and application software systems," said John Curtis, president and CEO.
"We expect these changes will give us the ability to bring hardware platforms to market more quickly and to provide
customers with powerful, standards-based platforms for their applications."
The company said its plan to reduce operating expeses by 30 perecnt to 35 percent is on track. Network Engines expects to
end the year with beteen $65 million and $70 million in cash.
Shares of NENG shed 0.02, or 3 percent, to 0.68. In the last 52 weeks, the issue has ranged from 0.6 to 48.5.
August 1, 2001 |
