February 3, 2011 / 4:47 PM / in 7 years

UPDATE 1-Symmetricom sees weak Q3, to cut jobs; shares fall

* To cut 55 jobs at Santa Rosa, Calif. facility - filing

* Expects $2.5 mln charge related to job cuts

* Sees Q3 adj EPS $0.00-$0.08 vs est $0.15

* Sees Q3 rev $45-55 mln vs est $61 mln

* Shares fall 16 pct

Feb 3 (Reuters) - Symmetricom Inc SYMM.O forecast third-quarter results below Wall Street estimates and said it would take a charge of about $2.5 million due to a facility relocation and related job cuts.

Shares of the company, which makes syncing and timing equipment used to control flow of voice and data in telephone and broadband networks, fell 16 percent to $5.33 in Thursday morning trade on Nasdaq.

Symmetricom expects third-quarter adjusted profit of up to 8 cents a share and revenue of $45-$55 million.

Analysts on average expect third-quarter adjusted profit of 15 cents a share, on revenue of $61 million, according to Thomson Reuters I/B/E/S.

In a regulatory filing, the company said it will shift its government business unit’s engineering and new product introduction team from Santa Rosa, California to its San Jose office to focus on networking platform development.

The company said it would cut about 55 positions from the Santa Rosa facility and add 35 new or replacement positions in its San Jose and Beverly, Massachusetts facilities.

For the second quarter ended Dec. 26, the company, which provides time solution to the aerospace, defence and IT industry, posted adjusted profit of 3 cents a share, edging past analysts’ estimates of 2 cents a share.

The company said sales fell 27 percent to $41.8 million, hurt by product supply and facility relocation. (Reporting by Krishnakali Sengupta in Bangalore; Editing by Anne Pallivathuckal)

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