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Technology Stocks : Somera Communications Inc-(SMRA) -- Ignore unavailable to you. Want to Upgrade?

To: Rupert who wrote (107)	3/21/2001 11:58:49 AM
From: phbolton	Read Replies (1) \| Respond to of 110

the layoffs are not good news but it is 10 day old news: Somera lays off 30 amid dip in revenue 3/10/01 By MARK VAN DE KAMP NEWS-PRESS STAFF WRITER mvandekamp@newspress.com Somera Communications has cut its workforce for the first time -- laying off about 30 people -- on warnings of weaker revenues ahead. The Santa Barbara-based company, which provides telecommunications and Internet equipment and services, said first-quarter revenue will be nearly flat compared with a year ago. It blamed the steep downturn in the telecom sector. Dan Firestone, chairman and chief executive officer, said no further reductions are planned. The majority of reductions were layoffs. "It was a difficult decision but the majority of reductions occurred on Thursday," Firestone said. ". . . We recognize the pain and disruption to the lives of our former co-workers." Job cuts were across the board with the exception of those departments focused on Somera's key strategic initiatives, which include expanding internationally, broadening services, and pursuing acquisitions. "Somera remains very strong and well positioned," Firestone said, "employing nearly 300 people worldwide." The layoffs are a big bump for the company, which started in 1995 and until now has been a fast-growing international equipment provider. Last year's revenues were $211 million, up 66 percent over 1999's revenues of $126.9 million. Somera became a public company in 1999. In the fourth quarter of 2000 it had revenues of $60 million. Firestone described 2000 as a year of "exceptional performance" in which Somera's operations expanded. Last year, Somera ranked second on BusinessWeek magazine's list of "hottest growth companies," outmuscling the World Wrestling Federation and stepping over shoe retailer Skeechers USA in the magazine's annual survey. But the telecommunications industry's explosive growth has slowed. In fact, Firestone warned in January that the company's first-quarter revenue could dip 5 to 7 percent compared with the fourth quarter. The company said this week it now expects revenues this quarter of around $42 million, or nearly unchanged from a year ago. Second-quarter revenue growth is expected to range from flat to 10 percent. Somera stock dropped 11 percent Friday, losing 78 cents to close at $6.19. The stock is well off its one-year high of $17.19. Its one-year low is $5.06.