Gadzoox Networks Inc., a San Jose-based vendor of storage-area networks technology, said it has reduced its workforce and overall operating expenses in an effort to become profitable.
In a statement issued today, the company also said it has consolidated facilities, eliminated or reduced contract employees and services, and ramped up its Slingshot 2Gb platform.
The company couldn't be reached for further comment.
"The actions that we have taken help position Gadzoox Networks for long-term growth and success," Michael Parides, Gadzoox Networks' President and CEO, said in the statement. "With this rapid adjustment to our cost structure, I believe that we are poised to capitalize on the strength of the entry-level SAN market segment and further our position as a leader in the transition to Open 2Gb Fibre Channel switching."
Gadzoox said it began volume shipments of the Slingshot 2Gb platform during the third quarter 2002. The company said preliminary figures indicate that the Slingshot platform accounted for more than 25 percent of total revenue for the third quarter.
In September, the company said it raised US$7.5 million through the sale of stock to two investment firms. Gadzoox used that money to bankroll the launch of its new line of 2G bit/sec. SAN switches and to fund future product development.
"Although we continue to have limited visibility in the near term for overall SAN growth, we are seeing a strong market demand for entry-level SAN products," said Parides. "This is the ideal market for our Slingshot platform, and we are working with our OEM and channel partners to deliver value-leading solutions to this segment. Compaq's successful MSA1000 product, which incorporates the Slingshot platform, is a clear example of our success in this segment."
The company plans to release its financial results for the third quarter on Jan. 23, after the close of the financial markets.