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Juniper Boots Employees
Juniper Networks plans to reduce its global workforce by six percent and focus on its high-growth businesses. Juniper said most of the cuts would impact middle management positions and that it expected to incur cash charges of about $35 million in the first quarter, related to severance and other expenses. The company had 9,483 full-time employees as of December 31.
Juniper also said it would stop development of the application delivery controller technology, which helps remove excess load from servers, resulting in a non-cash intangible asset impairment charge of about $85 million. The company said it plans to consolidate its facilities, flog off of about 300,000 square feet of leased facilities.
Juniper added that it expected to record other non-cash asset write-downs of about $10 million in the first quarter and that it expects to carry out more restructuring in the second quarter.
Hedge fund Elliott recently claimed that Juniper shares were “undervalued” and could be worth $35-$40 if Juniper focused on revamping its core business of making routers and switches for mobile carriers such as Verizon and AT&T. Shares of Juniper are currently worth at $26.35.
PC Sales Takes Toll On Seagate
Seagate Technology Plc’s shares tumbled as much as 8 percent on Tuesday, after the hard disk drive (HDD) maker projected first-quarter revenue below estimates on slowing sales of personal computers.
The company has been hit by sluggish economic growth and shaky sales of PCs as consumers shift toward tablets and smartphones.
FBN Securities cut its price target on Seagate’s stock to $32, saying selling prices had started to decline from their peak levels after theThailand floods last year and inventory had started rising.
Seagate’s weak outlook follows an upbeat fiscal 2013 forecast from rival Western Digital Corp, which is banking on strong sales to big businesses.
The company forecast first-quarter sales of about $4 billion, below analysts’ estimates of $4.62 billion, according to Thomson Reuters I/B/E/S.