PORTSMOUTH, NH — April 8, 2002 — Enterasys Networks, Inc. (NYSE: ETS) today provided information concerning its previously announced restructuring plan, which is designed to better align the Company’s cost structure with its revenue base.
The Company said that its work force will be reduced by 30% to approximately 1,700 employees. The reduction in force will be substantially completed this week. The Company also noted that the restructuring plan includes other cost savings programs, as well as lower capital expenditures and reductions in working capital.
“We are committed to achieving a successful turnaround so that Enterasys can once again be a prosperous and growing company,” said interim chief executive officer, William K. O’Brien. “The cost cutting initiatives are an important first step designed to achieve cash break even as soon as possible. We are continuously evaluating additional business improvement opportunities to increase sales effectiveness and reduce costs.”
About Enterasys Networks
Enterasys Networks (NYSE:ETS) is a leading worldwide provider of communications infrastructures for enterprise-class customers. Enterasys' networking hardware and software offerings deliver the innovative security, availability and mobility solutions required by Global 2000 organizations coupled with the industry's strongest service and support. For more information, visit www.enterasys.com.
This press release contains projections and other forward-looking statements regarding the future financial performance of the Company or other future events and circumstances, and actual results, events and circumstances could differ materially. These forward-looking statements are not historical facts or guarantees of future performance, and are based on current estimates and numerous assumptions. These estimates and assumptions reflect subjective judgments concerning future events and circumstances and may be incomplete or incorrect, and unanticipated events or circumstances may occur causing these estimates and assumptions to be wrong. Risks that could cause actual events or results to differ materially from those described in the projections or forward-looking statements include business disruption, market perceptions, and economic trends associated with the recent terrorist activities experienced in the United States as well as any continuation or repercussions thereof or responses thereto, as well as risks associated with competitive conditions, pricing and margin pressures as a result of product shifts and changes in market dynamics, greater use of, and expenses associate with, distributors and resellers, limited management resources, the Company's acquisition strategy, extension or deterioration of prevailing economic conditions, volatility in the stock markets and market valuations being placed on communications infrastructure and service companies, technological changes, intellectual property protection and related issues, dependence on suppliers and contract manufacturers, and potential volatility in operating results, among others. For a more detailed discussion of these and other risks and uncertainties related to the company's business, please refer to the most recent filings of Enterasys Networks, Inc. and Cabletron Systems Inc. with the Securities and Exchange Commission, including Cabletron’s annual report on Form 10-K for the fiscal year ended March 2, 2001 and their other more recent reports on Form 10-Q and Form 8-K.
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