Wireless LAN vendor Meru Networks is axing more than one in 10 of its staff and is considering a sale after warning over its Q4 results.
The NASDAQ-listed outfit revealed last night that Q4 revenues are set to fall between $21m (£13.8m) and $22m, below the previously announced guidance range of $23m to $27m.
Meru said it intends to slash more than 10 per cent of full-time employees in its current Q1 as part of a restructuring drive designed to cut the revenue marker at which it will break even each quarter from $27m to between $21.5m and $22.5m.
Deutsche Bank has been brought in as a financial adviser to "explore strategic options", which could include strategic partnering of its technology or a sale.
"We are disappointed with this performance, yet believe that our technology advantages can be converted into greater market adoption," said Dr Bami Bastani, chief executive of Meru.
"We are determined to optimise the mix of partners, channel distribution, and effective direct sales necessary to put the company back on a growth track. Today we have taken a major step in further streamlining the company structure to accelerate decision making, enhance operational efficiencies, and reduce breakeven sales to position the company for profitability."
Last night's announcement comes nine months after one of its investors, Castle Union, called for the vendor to be sold and claimed management there were being overpaid and that Meru had lost ground to peers Ruckus and Aerohive.
Meru's share price currently stands at $3.70, almost seven times less than its February 2011 high of $25.50.
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