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Auspex Axes 170

Restructures company and outsources manufacturing to cut costs

NAS vendor Auspex Systems Inc. (Nasdaq: ASPX) today announced 170 layoffs, or a third of its workforce, in a belt-tightening exercise that it says will reduce its operating expenses by approximately $4.5 million per quarter (see Auspex Axes).

Auspex has made several structural changes to streamline its business. In addition to the job cuts, these include a transition to outsourced manufacturing and the use of off-the-shelf parts, as opposed to proprietary components.

Auspex also is discontinuing its NS2K product, although it will continue to support it, to focus on selling its newer NS3K family, which includes three servers.

Auspex officials estimate the severance costs and other related expenses will total $3.5 million. There may be further charges to earnings this quarter, once the full effects of the resizing have been assessed.

Dramatic changes in the storage market as well as the general economic downturn have prompted us to make adjustments to put our expenses more in line with our revenues,” says Mike Worhach, president of Auspex Systems. “We firmly believe that these changes will position us for growth and profitability when the market rebounds.”

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