Corvis Corp. today announced a business restructuring initiative that consolidates its Research and Development organization and includes a further reduction in its U.S. workforce of approximately 180 employees.
"Current market dynamics remain difficult for Corvis and every equipment provider in our space," explains Dr. David Huber, chairman and chief executive officer of Corvis. "Today's actions were driven by the need to ensure a strong financial position to support the sales and world-class service of our industry leading and commercially proven networking solutions. This initiative is part of our continuing effort to structure the business for the long-term," he adds.
The company stated that while every area in the company had been affected by this restructuring, most of the reductions occurred in the company's Research and Development organization. Continuing research and development will focus on further product development, product expansion, and feature set improvements for the company's leading optical networking portfolio.
The results of the actions announced yesterday, as well as the reduction of approximately 164 positions in France announced in October 2002, will bring the company's headcount below 500 employees by the end of the first quarter 2003. The company is continuing to better align its ongoing operating costs with current market conditions and to position the company for a quarterly cash burn rate of approximately $25 million or below.
The company also stated today that it ended fiscal 2002 with cash and investments of approximately $504 million including expenditures associated with the company's previously announced stock repurchase plan, in-line with the company's previous guidance.