Sunrise Telecom Inc. reported a 52 percent year-over-year decrease in broadband cable sales in the fourth quarter of 2007 – sales totaled $5 million, compared with $10.6 million in the year-ago quarter.
In the fourth quarter, the CM2000 – which allows verification and troubleshooting of advanced services over DOCSIS 2.0 networks – was released. The company has been phasing out older products in its CM family of handhelds, and sales of the CM2000 have not yet offset the decline in older product versions.
Sunrise Telecom said it booked approximately $1 million in deferred CM2000 revenues in the fourth quarter and entered 2008 with a backlog of orders from four major cable operators in North America.
The company reported total sales of $27.2 million, down 26 percent year-over-year from $36.6 million.
But Sunrise Telecom posted a net loss of $1.5 million, compared with a net income of $5.3 million in the year-ago quarter.
Wireline product sales were $10.3 million, down 25 percent compared with the year-ago quarter. And fiber optics revenue totaled $9 million, up 17 percent year-over-year; the Scalable Test Toolkit (STT) was the main growth driver for the segment, the company said.
In order to reduce costs and improve operational efficiencies, Sunrise Telecom is implementing a restructuring plan, which includes a 12 percent reduction in the company’s worldwide workforce and a shut-down of certain international offices.
“The cost reduction program more closely aligns our infrastructure with our strategic plans and the current scale of our business,” said Sunrise Telecom’s President and CEO Paul Marshall. “It leaves us well-positioned to implement our long-term strategy – delivering leading testing solutions for the converging communications networks worldwide and building market share in our key target markets.”
When fully implemented, the program is expected to save about $10 million to $12 million per year on a pre-tax basis. Sunrise Telecom expects to begin feeling the savings in the first quarter of 2008.
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