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Technology Stocks : Wind River going up, up, up! -- Ignore unavailable to you. Want to Upgrade?

To: Ronald Paul who wrote (9814)	7/31/2001 9:33:25 PM
From: voop	Respond to of 10309

upside.com Wind River warns, increases planned layoffs July 31, 2001 05:04 PM ET by Michelle Rushlo Wind River Systems (WIND), the largest independent developer of embedded operating systems, warned today that a significant slowdown in customer spending would cause sales to be down by one-fifth from last year. It also said it would expand the number of previously announced job cuts. For Wind River's second quarter, which ends today, the company expects to report revenue of $79 million to $82 million, 19 to 22 percent lower than the $101.3 million it took in during the same period last year. As a result, Wind River expects to report a pro forma loss of 7 to 9 cents per share, sharply off the 10 cents it earned last year and the 1- to 3-cent-per-share profit it previously projected. Analysts surveyed by Thomson Finacial/First Call expected on average earnings of 2 cents a share on revenue of $98 million for Wind River's Q2. Hard hit "The business environment has continued to get tougher for many of our customers and has resulted in increasingly unpredictable purchasing behaviors," said President and Chief Executive Tom St. Dennis in a written statement. "We continue to believe in our long-term opportunities, but it is unclear when the environment will improve." The communications and storage segments of its business were particularly hard hit, he said. Other areas, like its aerospace, automotive and industrial measurement and control businesses, were less affected by the slowing economy. Wind River licenses its operating system and related software for a variety of devices ranging from car braking systems to digital cameras. Larger layoffs The Alameda, Calif.-based company had previously expected to lay off 12 to 15 percent of its workforce. Today, it said it would cut roughly 20 percent of its employees, or 400 workers. The job cuts, combined with other cost-cutting measures, are expected to save $65 million to $68 million in the upcoming third quarter. The company will announce full financial results on Aug. 16. Its annual shareholder meeting is scheduled for Wednesday. Wind River shares closed regular trading down 1.58 percent, to $14.32. At 5:10 p.m. ET, shares dropped 15 percent, to $12.05, in after-hours trading.