Oplink announces restructuring
1 October 2002 -- Oplink Communications is to reduce costs through further consolidation of manufacturing and operations, including the closure of its Shanghai facility and a reduction in staffing.
1 October 2002 -- San Jose-based Oplink Communications Inc says it is to undertake several initiatives that will reduce costs and enhance its capabilities in electronics, software intelligence and optics, expanding the performance of its optical subsystem solutions. They include the further consolidation of manufacturing and operations, the closure of its Shanghai facility and a reduction in staffing.
Oplink says that the measures will allow it to extend and enhance current R&D investments and capabilities, and result in a USD12m decrease in annual operating expenses. Also, Oplink expects to report revenue of about USD6.0m for fiscal Q1/2003 (to end-September).
"In response to ongoing demand from customers, we have continued to expand our integrated subsystems and corresponding manufacturing capabilities, despite challenging market conditions," said president and CEO Fred Fromm. "We believe that these restructuring initiatives will allow us to expand R&D efforts into software development and integration of optics and electronics, while aligning future operating expenses with current demand and realising operating efficiencies. This will be made possible by transitioning a significant portion of R&D to China."