Shares of

Pemstar

(PMTR)

were tanking Thursday, a day after the company cut its first-quarter guidance and said it will begin a restructuring program, which includes a 5% workforce reduction.

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The company cited SARS and sluggishness in the technology industry. Recently, shares were down about 23%, or 91 cents, to $3.08 on the news.

Including a restructuring charge of 10 cents a share, the company expects a quarterly loss of 28 cents to 30 cents a share. Initially, the company had expected results to range from break even to a loss of 4 cents a share.

Analysts were expecting a loss of 3 cents a share. The company, a provider of engineering, product design, automation and testing services, lost 32 cents a share in the previous-year quarter.

The Rochester, Minn. company now expects revenue of $145 million to $150 million in the quarter ended June 30, down from its original estimate of $160 million to $165 million. Analysts were expecting total sales of $163 million.

During its reorganization, Pemstar said it will consolidate its San Jose and Mountain View, Calif., operations into one site and close four smaller, leased locations. The location changes and closings will reduce the company's domestic workforce by about 5%.

Pemstar expects these actions to save the company $1.5 million to $2 million a quarter. To cover severance and other restructuring costs, the company will take an after-tax charge of around $7.8 million, or 21 cents a share, over the first and second quarters.