Endwave to cut 30 percent of work force, or 100 positions

The Associated Press
Friday March 29, 2002

SUNNYVALE — Chip maker Endwave Corp. said Thursday it will cut 100 jobs, or 30 percent of its work force, and close its Los Angeles design facility, 

The Sunnyvale-based company also said that it continues to expect a first quarter loss of 26 cents to 28 cents a share.  

The expected loss for the period excludes restructuring charges of $3 million to $5 million, including severance costs of about $1.5 million. 

The company still anticipates a pro forma loss before deferred stock compensation and restructuring charges of 23 cents to 25 cents a share. 

A Thomson Financial/First Call survey of three analysts produced a mean first-quarter loss estimate of 24 cents a share for Endwave, which posted a loss before items of 25 cents a share a year ago. 

Endwave also reaffirmed the prior first-quarter revenue forecast of $4 million to $5 million. The company reported revenue of $12.5 million for the first quarter ended March 31, 2001. 

Endwave employed about 340 workers on Feb. 28, including the 100 at the Los Angeles facility. 

The company expects the job cuts to save about $7 million a year. It expects to see a positive effect on its cash burn rate and improvement in overall operating results in the third quarter. 

Endwave said it continues to expect 2002 revenue of $25 million to $28 million. In the past 12 months, the company lost $166.3 million on revenue of $40.02 million. 

Shares of Endwave were trading unchanged at 86 cents on the Nasdaq Stock Market at midday Thursday.