Emulex to cut 10 percent of workforce, close plant
(Reuters) - Network equipment maker Emulex Corp said it would cut 110 jobs, or 10 percent of its workforce, and close an engineering facility as part of a restructuring program initiated last month under pressure from shareholders.
Emulex said it expects to incur pretax charges of $9 million-$10 million related to the job cuts, mainly in the second quarter ending December 29.
The company, however, kept its earnings forecast of 15-17 cents per share for the quarter.
Emulex said in November it will buy $200 million of its shares and reconstitute its board.
Activist hedge fund Starboard Value LP said in September Emulex was "extremely undervalued". Altai Capital has been urging the company to sell itself.
Earlier this year, Bloomberg reported Emulex could be considering a sale.
Broadcom Corp offered to buy Emulex in 2009 for about $764 million in a bid that resulted in Emulex shareholders and Broadcom suing Emulex. (link.reuters.com/zyn26t)
Broadcom also filed a patent infringement lawsuit against Emulex, months after its $11-per-share offer was rejected. (link.reuters.com/kag49t)
The company said on Wednesday it expects to close the Bolton, Massachusetts plant and complete the restructuring by June 2014.
Emulex shares were down nearly 2 percent in on the New York Stock Exchange on Tuesday.
(Reporting by Chandni Doulatramani in Bangalore)