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), which makes equipment for next-generation communications networks, is laying off a third of its staff.

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The company, which employs over 200 people, is laying off about 30% of its staff, or 70 people. Of that, 56 people are being fired from the company's Israeli operation.

The company also said it is scaling back long-range research and development efforts, and that together these moves will reduce quarterly operating expenses by 41% from second-quarter levels.

VocalTec will incur restructuring and other related charges of $2.5 million to $3.2 million in the third quarter, it said. It also preannounced third-quarter revenues of about $3 million and, including the restructuring charge, it expects a loss per share of between 62 and 69 cents.

In June VocalTec reported that second-quarter 2002 revenues had doubled from the first quarter to $6.8 million. That figure was 23% above its revenues for the second quarter of last year.

The company attributed the leap to a single major order received during the first quarter, but booked in the second.

VocalTec said it lost $1.9 million in the second quarter, of 16 cents per share, versus losing $3.9 million or 32 cents per share in the previous quarter, and $14.6 million loss of $1.2 per share in the parallel quarter.