Wednesday, April 25, 2007

Spirent Announces Restructuring

Spirent Communications announced a restructuring that will see the company focus on its Performance Analysis business. The company said its restructuring will eliminate duplicated activities and processes, consolidate manufacturing and reduce general overheads. In addition, corporate overheads will be reduced significantly, with a number of activities being integrated into business units.

The total annualized cost reductions resulting from the restructuring are £21.5 million (US$43.0 million) representing an approximate 12 percent reduction in costs for Performance Analysis, shared services and corporate overheads combined. Approximately 70 percent of the cost reductions will occur in manufacturing and overhead areas.

Spirent said it believes that that there are significant opportunities for growth in broadband revenues, Wireless products and in Spirent TestCenter sales. In order to best exploit those opportunities, the allocation of development resources has been adjusted to achieve net sales growth and reduce risk by concentrating on the development and adoption of Spirent TestCenter and investing in the growth of Wireless and positioning products. The resulting reduction in product development spending for Performance Analysis will be achieved in significant part by consolidating projects into a smaller number of locations.

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