Inrange Announces Stock Buy-Back Program, Increases Q4 Guidance
December 05, 2001 09:13:00 (ET)
LUMBERTON, N.J., Dec 4, 2001 /PRNewswire via COMTEX/ -- INRANGE Technologies (INRG, Trade), a subsidiary of SPX Corporation, announced today that its Board of Directors has authorized the repurchase of up to $20 million of its Class B common stock. The purchases will be made at management's discretion in the open market at prevailing prices, or in privately negotiated transactions at then-prevailing prices. The decision to initiate this buy- back program is based on the company's continued confidence in its business and the relatively low price of the stock.
INRANGE also announced that it has seen a strengthening of its business during the quarter, and it is increasing its revenue and earnings per share guidance for the quarter. Revenues are now expected to be in the range of $60 - $66 million, with earnings per share before restructuring and special charges from $(0.02) to $0.02 per share. The company continues to take actions to strengthen its balance sheet and to rationalize expenses, and during the fourth quarter, the company expects to record restructuring and special charges of approximately $8 - $12 million, related to severance costs associated with the recently announced work force reductions, as well as current estimates for asset impairments.
Commenting on the announcement, Greg Grodhaus, President and CEO, stated, "Our business has rebounded from the difficult third quarter, in which our results were negatively impacted by uncertainty in the market after the events of September 11th. Through the first two months of Q4, we are ahead of the first two months of Q3, and, in addition, we expect to realize some benefit from our recent cost reduction actions. As a result, we believe that there is upside to our original fourth quarter guidance, with a possible return to profitability during the quarter."
About INRANGE (www.inrange.com)
INRANGE Technologies Corporation (INRG, Trade), a subsidiary of SPX Corporation (SPW, Trade), provides large-scale, mission critical storage networking products, software and services -- the IN-VSN offering -- which provides "end-to-end, any distance - anywhere" solutions. These solutions include a unique family of switches, HBAs, directors, storage over WAN and optical networking products that allow storage networks to extend beyond traditional geographic boundaries. Through the combination of the IN-VSN family of products with the INRANGE Global Consulting offerings of consulting and professional services, INRANGE creates solutions for customers' complex business problems and storage networking applications. INRANGE has a 33-year history of providing mission-critical networking technologies, servicing over 2,200 customers in 90 countries.
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