Inventory Too High, Datum Fires 6% of Staff
IRVINE — Datum Inc., squeezed by holds that customers have placed on their shipments, said Thursday that it dismissed about 40 employees, or 6% of its staff, in late January.
Chairman Louis Horwitz said the dismissals of mainly manufacturing and support employees were needed to reduce expenses until the company’s backlog of inventory lessens. “Although I have no crystal ball, we do expect to recall some of these people,” he said. No further dismissals are planned, he said.
For the record:
12:00 a.m. Feb. 14, 1998 For the Record
Los Angeles Times Saturday February 14, 1998 Orange County Edition Business Part D Page 2 Financial Desk 1 inches; 23 words Type of Material: Correction
Datum sales--A story Friday about Irvine-based Datum Inc. incorrectly reported the company’s fourth-quarter 1997 sales. They are expected to be about $23 million.
The Irvine manufacturer of equipment that tracks information in phone networks said its major customer, Lucent Technologies Inc., changed its production system, forcing Datum to hold up shipments until the parts are actually needed. Lucent is the former equipment arm of AT&T; and now one of the world’s largest suppliers of communications equipment.
Previously, Datum said that fourth-quarter earnings and sales will fall below industry analysts’ expectations.
Results won’t be released until next week, but the company said annual sales are expected to be about $23 million, or about $10 million below expectations. The company also will likely post little or no profit. Analysts had expected 24 cents a share.
The company’s stock closed Thursday at $14.88 a share, up 38 cents in Nasdaq trading.
