HOLTSVILLE, N.Y.-Symbol Technologies Inc. cut its second-quarter outlook and announced it will cut 700 jobs, news that sent the company’s stock down almost 7 percent to $9.76 per share.
Symbol blamed its troubles on the economic sluggishness in the global retail market. The company said it now expects second-quarter revenues of $440 million, rather than the $460 million to $470 million it previously expected.
“With the turnaround phase of our transformation plan nearing its end, we need to shift resources to efforts focused on growing profitability in 2005 and beyond,” said Bill Nuti, Symbol’s president and chief executive officer. “Over the past several years, we have allocated substantial resources to certain functional areas in order to permit Symbol to successfully implement its turnaround program. Now that we are in the next phase of Symbol’s evolution, we must balance our spending on the activities needed to drive profitable growth, while maintaining strong financial controls and business processes.”
Symbol’s announcement comes shortly after the company emerged from a government accounting probe.
