As test & measurement equipment vendor Sunrise Telecom proceeds with combining its operations into a single business unit, it recorded $19.8 million in sales for its second quarter, down from $23 million in the second quarter of 2007.
The second-quarter operating loss was $3.8 million, compared with an operating loss of $5.2 million in the prior quarter and an operating loss of $2.9 million in the second quarter of 2007.
“Second quarter revenues came in at the high end of the expected range, despite the challenging economic environment,” said Sunrise Telecom President and CEO Paul Marshall. “Additionally, we took significant actions during the quarter to improve our cost structure and reduce the overall complexity of our organization. These actions, combined with an enhanced product portfolio, should drive improved financial performance throughout the second half of 2008.”
Sunrise Telecom said it is close to completing the integration of its wireline, fiber optic and broadband product groups into a single business. Total headcount has been reduced by 13 percent since year-end 2007.
The consolidation of manufacturing facilities is expected to be completed in the third quarter, including the shutdown of the Montreal facility. The company expects annualized savings of approximately $10 million to 12 million per year, on a pre-tax basis, when the restructuring is complete.
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