SANTA CLARA, Calif. (AP) — Ethernet networking technology company Extreme Networks Inc. said Thursday that it plans to cut about 110 jobs, or about 16 percent of its worldwide work force, to reduce operating costs by about $20 million in fiscal 2012.
The company plans to book a pretax restructuring charge of about $3.5 million in the fiscal fourth quarter, which ended July 3, and it lowered its estimate of results for the period.
Extreme said it expects a fourth-quarter net loss of 2 cents to 4 cents per share, including restructuring charges and stock option expenses.
It expects adjusted earnings in the range of 1 cent to 2 cents per share, down from its earlier guidance of 3 cents to 5 cents per share. It is forecasting revenue of $88 million to $90 million, above its prior guidance of $80 million to $85 million.
Analysts, on average, are expecting adjusted earnings of 4 cents per share on revenue of $81.6 million, according to a poll by FactSet.
As part of its restructuring plan, Extreme said it is consolidating most of its software engineering resources into its current facilities in lower-cost areas. On the other hand, it plans to boost its investment in research and development by increasing its workforce over the course of the year.
Extreme plans to posts its quarterly results on Aug. 1.
Shares rose 30 cents, or 8.8 percent, to $3.70 in after-hours trading after closing at $3.40, down 7 cents, in the regular session.
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