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CNT Takes a Hit

As expected, Computer Network Technology Corp. (CNT) (Nasdaq: CMNT) yesterday confirmed grim quarterly numbers on all fronts -- for revenues, earnings, and employees (see CNT Loses $5.5M, Reduces Staff).

Revenues for CNT's second quarter ending July 31 came in at $77.2 million, compared with $96.2 million in the previous quarter. The sequential drop amounts to almost 20 percent. CNT posted a second-quarter net loss of $12.1 million, or $0.44 per share, compared with net losses of $4.5 million, or $0.16 per share, a quarter ago.

The company's pro forma loss in the second quarter was $5.5 million, or $0.20 per share, compared with $1.5 million and $0.05 per share in the first quarter.

CNT's reaction to the poor showing also came as little surprise. The company admitted that 220 employees were shown the door last week, bringing its headcount down to around 1,000 -- a reduction of roughly 18 percent (see CNT Cuts Anticipated).

The cuts affect sales, support, and engineering staff, which the company hinted came mostly from its weak-selling SAN extension product line. CNT CEO Tom Hudson said the cuts were not across the board.

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