Cylink Reduces Workforce as It Implements Cost Reduction Program
SANTA CLARA, Calif.--(BUSINESS WIRE)--Oct. 31, 2000--Cylink Corporation
(Nasdaq:CYLK - news) today announced that it is reducing its workforce by
approximately 12% as part of its program to bring costs into line with near-term
revenue expectations.
The personnel reduction together with reduced infrastructure costs and
other discretionary operating expenses is expected to reduce total operating
expenses by approximately 17% in the first quarter of 2001.
"These changes will reduce our operating expenses below the level we
had at the beginning of the year," said William P. Crowell, president and chief
executive officer. "As we discussed during our quarterly results conference call
on October 19th, this reduction in operating expenses is targeted to achieve a
self-sustaining business model while we continue to focus our energies on
increasing our products' market penetration."
About Cylink Corporation
Cylink Corporation develops, markets and supports a comprehensive
family of secure e-business solutions. Founded in 1983, the Company was the
first created to market security solutions that protect communications with
public key cryptography. Cylink and its wholly owned subsidiaries serve Fortune
500 companies, multinational financial institutions, and government agencies
worldwide. For more information, visit the Company's web site at www.cylink.com.
This release includes the forward-looking statement that Cylink's cost
reductions are targeted at achieving a self-sustaining business model. This
forward-looking statement involves risks and uncertainties, and actual results
could be materially different. Factors that could cause actual results to differ
include unexpected delays in market acceptance of Cylink's products, inability
to achieve any of the anticipated cost reductions, disruption in Cylink's sales
and operations caused by its reduction in work force, introduction of new
technologies and other risk factors listed from time to time in the company's
SEC reports, including but not limited to the report on Form 10-K for the year
ended December 31, 1999, and its reports on Forms 8-K, 10-Q and the Annual
Report to Shareholders.
