Vyyo Says Layoffs Will Save $20 Million

Vyyo on Monday said shutting down Israel operations will eliminate approximately 100 management and staff positions and save the company $20 million per year.

The company, which has been trying to sell spectrum-expansion gear to cable operators, said Friday it was cutting “more than 70” employees. 

Vyyo will move research and development, engineering, logistics and customer support functions into its Norcross, Ga., headquarters. The company also plans to transfer its production from Israel to contract manufacturers in Asia.

In releasing results for the quarter ended Dec. 31, Vyyo also announced that it has signed a two-year purchase agreement with a “top five cable operator” for its UltraBand products.

That customer may be Cox Communications, which had previously announced plans to deploy Vyyo’s 3-Gigahertz spectrum-overlay equipment in new network builds and in its existing coax networks to provide business services.

For the quarter ended Dec. 31, Vyyo reported a net loss of $8.5 million on sales of $2.3 million. The company had $12.7 million in cash, cash equivalents and short-term investments at the end of the year, down from $19.2 million the previous quarter.

In addition, Vyyo said it received notification from NASDAQ that it does not comply with the minimum $50 million market value required for continued listing on the market. The company has until Feb. 28 to come into compliance.