Server maker Sequent surprised the industry last week with a profit warning and the announcement of job cuts.
The company expects to make a loss in its second quarter and will cut up to 250 jobs as a result. The shock profit warning for the quarter ending 4 July comes on the back of turbulence in Asian and European markets and a major reduction in requirements for the company's contract with Boeing.
Bob Gregg, chief financial officer, said he expects a loss of up to $0.35 (20p) per share, a complete turnaround from the stock market's expectations.
The company will take a one-off charge of around $60 million (#36 million) to cover the costs of the job cuts and the closing of selected facilities.
The UK market was singled out by Gregg as a poor performer.
"By contrast to Asia-Pacific, Europe - and the UK in particular - represents a much bigger segment of our business, and the magnitude of this quarter's slowdown there is particularly disappointing in light of the strength we saw in the first quarter," said Gregg.
Paul Kelly, Sequent's UK managing director, said the company is still working out how many people it will lay off but confirmed that the UK will be affected by the cost cutting measures. As 490 people work at Sequent UK, sources expect that between 40 and 50 staff will leave.
In the US a potential $100 million (#60 million) contract with aircraft manufacturer Boeing dwindled when the company decided not to purchase Sequent's Numa servers.
Sequent plans to launch new servers before the end of the year to target the mid-range market, and hopes the new machines will boost its results.
The Numa-Q1000 range will be able to run Unix or Windows NT.
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