CHARLOTTE, N.C.-Citing world market uncertainty, Glenayre Technologies Inc. reported plans to reduce its global work force by 10 percent and move its Boston operations to its Atlanta facility.
“Despite the economic uncertainties we face, we believe that we are taking the most appropriate measures to weather them,” said Gary Smith, Glenayre president and chief executive officer. “When these actions are completed, we will gain over $15 million in annualized savings.”
He added that the changes will have a minimal effect on research and development spending.
The changes will result in restructuring charges of about $8 million, according to Stan Ciepcielinski, Glenayre chief operating officer, which will be reported in fourth-quarter earnings. The integration costs of moving the Boston activities to the Atlanta facility will result in another $4 million.
For the third quarter, Glenayre reported a net income of $11.5 million, or 18 cents per share, compared with $15 million, or 24 cents per share, reported last year. Net sales for the quarter were $126.7 million, up 13 percent from $112.1 million the previous third quarter.
