SOURCE: Catapult Communications Corporation
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March 07, 2008 05:00 ET
Catapult Communications Reports Reduction in Force
MOUNTAIN VIEW, CA--(Marketwire - March 7, 2008) - Catapult Communications Corporation
(NASDAQ: CATT) today announced that it is reducing its global workforce by
up to 25 employees through layoffs and early retirements. This
restructuring represents a reduction in the number of employees of up to
11%. Included in the restructuring is the closing of the Company's
Australian research and development office.
The Company expects that this restructuring will reduce annualized pre-tax
expenses by up to approximately $4.8 million, including up to approximately
$465,000 in non-cash stock option expenses. The Company expects to record
total restructuring costs of up to approximately $1.9 million in the
current fiscal quarter ending March 31, 2008.
"We continue to believe that the next generation of global wireless
telephony, LTE, will be positive for Catapult, and we will continue to
invest significant research and development resources in this technology,"
said Dr. Richard A. Karp, Catapult's Chairman and CEO. "However, because
revenue from this technology will not occur as quickly as originally
anticipated due to delays in finalizing the standards, we have taken steps
to reduce our expenses in the short term," he concluded.
About Catapult Communications
Catapult Communications is a leading supplier of advanced digital telecom
test systems to global equipment manufacturers and service providers,
including Alcatel-Lucent, Ericsson, Motorola, NEC, NTT DoCoMo, Nortel and
Nokia Siemens Networks. The Catapult DCT2000® and MGTS® systems deliver
superior high-end test solutions for hundreds of protocols and variants --
spanning LTE, IMS, WiMAX, mobile telephony, VoIP, GPRS, SS7, Intelligent
Network, ATM and ISDN. The Company is committed to providing testing tools
that are at the forefront of the telecom technology curve.
Catapult is headquartered at 160 South Whisman Road, Mountain View, CA
94041. Tel: 650-960-1025. International offices are located in the U.K.,
Ireland, Germany, France, Finland, Sweden, Canada, Japan, China, Australia,
India and the Philippines. Information about Catapult Communications can be
found on the Web at www.catapult.com.
Forward-Looking Statements
The statements in this press release regarding the expected reduction in
the number of employees, the expected reduction in expenses and expected
restructuring charges are forward-looking statements. These statements are
subject to various risks and uncertainties that could cause actual results
to differ from those forecasted. Such risks and uncertainties include the
final determination and review of the results of the Company's
restructuring program, including any restructuring costs. For other factors
that may cause actual results to differ from those projected, please refer
to the Company's Form 10-K, Forms 10-Q and other filings with the
Securities and Exchange Commission.