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Storage Networks Rises on Earnings, Job Cuts

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Data storage management company Storage Networks (STOR) - Get STORE Capital Corporation Report was up 9.7% in preopen Island trading after the company posted a first-quarter loss of 33 cents a share, beating the consensus estimate by 1 cent and slightly narrower than the loss of 34 cents a year ago.

Revenue was $33.4 million, up 23.2% over the first quarter.

The company said business is slowing and it remains "disappointed with the speed of which new bookings are occurring."

Storage Networks said it was cutting 220 jobs, or 33% of its workforce, and said it hoped to achieve gross margin profitability in the third quarter of this year, one quarter ahead of previous guidance.

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