Advanced Fibre Communications will cut 94 jobs, or 11 percent of its workforce, and close its Buffalo Grove, Ill., facility as demand for telecom equipment continues to lag.
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A spokeswoman for the Petaluma, Calif., firm said work done at the Buffalo Grove facility will be moved to the company's other plants in California, Texas and Florida.
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"Even though we were able to achieve our goals for the quarter, it was a difficult period," AFC president and CEO John Schofield said. "We saw a slower ramp in orders in the first quarter of 2003, compared
with 2002.
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Among the reasons, Schofield said, were: soft spending by carriers, in part because of regulatory uncertainty; a
weaker-than-expected economy and war in Iraq; and a severe winter in the Midwest and East.
The company, which competes with Lucent and Nortel, among others, will take a $5 million charge in the second
quarter to pay for the layoffs and facilities closings.
In the first quarter the company posted sales of $80.5 million and profits of $7.9 million, or 9 cents per share.
AFC sells broadband network access equipment to more than 800 service providers worldwide.
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AFC Tightens Belt