Dot Hill Systems Corp., a Carlsbad maker of data storage equipment, said Dec. 9 it is shutting down 40 percent of its local operations by year end to sublease the space, and is cutting 10 percent of its work force or 27 persons as part of a restructuring plan.
CFO Hanif Jamal said a planned relocation of the company to Longmont, Colo. that was supposed to happen in mid-2009 is delayed until 2010 to preserve the firm’s cash.
The recent reductions will cost the company $1.25 million to $1.75 million in severance costs and fees, Dot Hill said.
Dot Hill has taken to slashing expenses in light of more than two years of losses, which will continue in the fourth quarter, the company said.
The restructuring measures should save the company $2.5 million to $3.5 million in 2009, but Dot Hill is looking at additional ways to reduce its expenses, Jamal said.
Dot Hill forecast net revenue from $70 million to $76 million in the fourth quarter.
Traded on Nasdaq under HILL, shares closed Dec. 9 at 70 cents, and have ranged from 52 cents to $4.12 over the past 52 weeks.
, Mike Allen
