SonicWall Announces Restructuring

The vendor, based here, said it is realigning its staff to reinforce its focus on new product development and selling those products through solution providers and distributors.

SonicWall said it expects charges of approximately $1.5 million to $2.5 million this quarter due to the restructuring. In addition to cutting staff, the company said it will close some domestic and international facilities.

Matt Medeiros, SonicWall president and CEO, said in a prepared statement that one of his first goals when joining the company in March was to evaluate its operations and strategy and ensure they were aligned for growth and shareholder value.

"This action represents an important step in that direction. Making sure we have the right resources invested in the right areas is a critical step in repositioning the company for success," he said.

The restructuring comes about a year after another cost-cutting move by SonicWall that cut its workforce by 15 percent to 20 percent and consolidated office facilities. About three months after that restructuring, then-CEO Cosmo Santullo resigned.

SonicWall's 2002 revenue was $103.2 million, down from $112 million in 2001. First-quarter revenue of $20.3 million was down from $28.1 million the year-ago quarter.