Sprint Drops Lightbridge

The customer management outfit gets out of the decisioning business.
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Lightbridge (LTBG) says it will close a business unit after its largest customer, Sprint (S) - Get Report, bolts.

The Burlington, Mass., customer management shop says it will discontinue its so-called decisioning business, a consulting service that helps telcos screen customers.

The company plans to fire 200 workers and take a restructuring charge of somewhere between $6.5 million and $13 million through the second quarter of 2007.

Lightbridge says negotiations with Sprint, its top decisioning client, failed, and Sprint has advised the company that it "will not be a significant customer after October 2006." The company says its Sprint business is "expected to rapidly wind down prior to expiration of the Sprint contract on December 31, 2006."

The company reaffirmed sales guidance of about $23.4 million for the third quarter, and says earnings should be between 3 cents a share and 11 cents for the third quarter ended last week.

Lightbridge shares closed up 50 cents at $11.46 Wednesday, but trading was halted on the stock in the afterhours.