SOURCE: Catapult Communications Corporation

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.

Contact Information

  • For investor information contact:
    Leigh Salvo
    Investor Relations
    (650) 314-1000
    ir@catapult.com