Thursday, March 27, 2008

Plano-based Interphase cutting jobs, closing Illinois plant

By Pegasus News wire

PLANO — Interphase Corporation, the Plano-based international supplier of next-generation networking technologies, today announced a restructuring within its United States based business operations. Under the restructuring plan, Interphase will cut its workforce by 14 employees.

Photo not provided by Interphase

Interphase has been losing ground to hated rivals Prophase and Mitosis

As part of this plan Interphase will also be closing its satellite development facility in Lisle, Illinois. The restructuring charge for first quarter 2008 will be in the range of $300,000 to $400,000, with an additional charge of approximately $40,000 associated with the facility closure during the second quarter of 2008. Interphase currently estimates that this restructuring plan will result in savings of over $1.5 million in annualized operating costs.

“Interphase has made this extremely difficult decision to streamline our US organization,” said Greg Kalush, CEO of Interphase Corporation. “As a consequence of our design wins at multiple customers, we invested significantly in new AdvancedTCA product development activities during the latter half of 2006 and throughout 2007 in order to meet our schedule commitments. While we delivered to our commitments, it has become apparent that the timing of the adoption and deployment of AdvancedTCA and MicroTCA based common platforms has been affected by industry consolidation resulting in many Tier 1 customers reporting delays in the general availability of these new platforms. These delays have caused us to re-examine our short term revenue expectations in relation to our current expense base as we manage the company resources. Balancing our current expense base, will enable us to aggressively pursue future growth opportunities for our business as we seek to diversify our revenue base and strengthen our competitive position in the market.”

Source: Interphase Corp.

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