HighWave to restructure, cut staff by 109 to 58

30 August 2002 -- HighWave Optical Technologies, Lannion, France, has announced a restructuring plan to "adapt its cost structure to current sales levels".

Aug 29th, 2002

30 August 2002 -- HighWave Optical Technologies, Lannion, France, has announced a restructuring plan to "adapt its cost structure to current sales levels".

The company is to implement a restructuring plan cutting staff headcount to 58, through a reduction of 109, mostly in overhead and production. There will also be an expense reduction program, but HighWave says it will maintain its design and development resources to meet current requirements. The company aims to achieve a positive EBITDA for next fiscal year, starting in April 2003.

Eric Delevaque, Chairman and CEO, said, "We have experienced a revenue decline, together with a change of mix between volume orders and prototype orders. Between 1999 and 2001, we were able to respond to the explosion of customer requirements for the first generation of DWDM. Then our revenue mix between volume and prototype was 90% to 10%. In 2002, volume orders reduced significantly."

"Our sales revenue forecast for this year (ending March 2003) comprises 80% prototype shipments, needed to build the second generation of optical networks, which should generate significant volume orders after 2004," he added.

"Longer term the forecast depends on the introduction schedule of the new generation. We have recently seen a growing number of customers, prospects and new references on all continents, reflecting both the recognition of our products by the market and the reduced number of suppliers as an effect of the current environment."

www.highwave-tech.com

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