Dec 11 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
Emulex said it expects to incur pretax charges of $9
million-$10 million related to the job cuts, mainly in the
second quarter ending Dec. 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. ()
Broadcom also filed a patent infringement lawsuit against
Emulex, months after its $11-per-share offer was rejected. ()
The company said on Wednesday it expects to close the
Bolton, Massachusetts plant and complete the restructuring by
Emulex shares were down nearly 2 percent in on the New York
Stock Exchange on Tuesday.