LOS GATOS, Calif. -- Hifn(TM) (NASDAQ:HIFN) announced a series of actions today that are intended to accelerate Hifn's return to profitability as it continues to provide solutions that protect information at risk for its networking and storage customers.
"While our outlook for the next several quarters is positive, Hifn is streamlining the company's development efforts to concentrate on its core expertise of providing security, compression, content search and flow classification technology solutions for network and storage developers," said Chris Kenber, Hifn's chairman and chief executive officer.
"More specifically, the plan focuses Hifn's strategy on the protection of information at risk in the company's two key networking and storage markets and takes advantage of Hifn's expanding development capacity in China. Hifn has reduced its North American resources by approximately 45 employees, which represents about 22% of its overall workforce. The company will close its facility in Carlsbad, California. This restructuring is expected to generate an annual cost savings of $6 - $7 million with most of the savings reflected in lower research and development costs," said Kenber. "We expect that the implementation of the plan should result in our achieving profitability and a return to positive cash flow for FY07. We do not believe that any of these reductions will affect current customer engagements or revenue."
Hifn Inc. (Nasdaq: HIFN)