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Xiotech: 'We're Out of the Red'

Xiotech Corp. CEO Casey Powell says the SAN systems vendor broke even last quarter following a restructuring in April, and he forecasts turning a profit this quarter (see Xiotech Regroups).

Powell, stung by claims that a layoff of one-quarter of the companys work force was a sign of trouble, says those moves were necessary but stops short of admitting Xiotech was in bad shape.

“We made a lot of very strong moves here, some of which may have been misinterpreted,” Powell says. “Companies that are healthy make these moves all the time. Unfortunately, companies that aren’t healthy do it, too. And it might be hard to tell the difference.”

Powell still doesn’t give out the numbers of the April layoff, although sources say the Eden Praire, Minnesota-based firm cut around 100 of its 400-person staff. The CEO does say the company closed its Rochester, Minn. development center, beefed up its development center in Hyderabad, India, and replaced its entire sales management team.

“We’ve had significant turnover,” he says.

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