Storage maker Adaptec has announced that it will take a charge of $22 to $28 million against second quarter earnings to cover restructuring charges.
Adaptec has cut 850 jobs, or 25 per cent of its workforce, since April. It has dropped its satellite networking, external storage and Fibre Channel businesses, to refocus on its core SCSI business.
Since July, Adaptec is being headed by an interim CEO, company founder Larry Boucher.
In a conference call on Thursday, Boucher said the Fibre Channel standard interface - a faster alternative to SCSI - is ?still a long way in the future?, because it relies on emerging technologies such as storage area networks, NT 5.0 and advanced clustering. However, many analysts see Fibre Channel as the successor to SCSI, especially in the high end of the market.
Adaptec also told analysts that revenues would be between $140 and $145 million for the quarter, down from $180.6 the previous quarter and $278.1 a year ago. Earnings before the charges were expected to be toward the low end of analysts' expectations, the company said.
Boucher claimed that the company has several products in the pipeline that will bring high margin revenue in the near future. He said that, among other things, the company is working on a new Raid product.
Adaptec shares dropped $0.69 to $10.875 in trading on Friday.
Adaptec is hoping that the appointment of an 'interim CEO' will have the same beneficial effect it had at another troubled company, Apple.
Like Apple Interim CEO Steve Jobs, Boucher is the founder of a company and has now returned to revive it. And also like Jobs, he is retaining his day job at another company he founded, Alacritech.
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