ION Networks Sets Restructuring, Sees Third-Quarter Charge

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ION Networks

(IONN)

set a restructuring plan that includes work force reductions and the consolidation of locations, in an attempt to reach positive earnings before interest, taxes, depreciation and amortization.

The Piscataway, N.J., company, which makes software and hardware for voice and data network infrastructure, will incur a restructuring charge in the third quarter of up to $4.5 million. As a result, operating expenses, excluding depreciation and amortization, are expected to decrease by more than 42% in the fourth quarter ending March 31 compared with the year-ago period.

The company said it is "now positioned for a return to positive EBITDA, as costs have been aligned and cash has been secured to fund our revised operating plans."

Shares of ION Networks closed Tuesday down 6 cents, or 5.7%, to $1.03 in

Nasdaq

trading. The 52-week low is $1.