Meru Networks, Inc. (MERU)

[mgland]

MERU.....These guys get bought IMHO.....

Meru Networks to Explore Options, Cut Jobs
5:18p ET January 6, 2015 (Dow Jones) Print
Meru Networks to Explore Options, Cut Jobs

By Josh Beckerman

Meru Networks Inc. (MERU), which makes networking products used to provide Wi-Fi service, said it would evaluate its options, including a potential sale, as it unveiled a restructuring plan.
Meru, which also warned of disappointing fourth-quarter revenue, expects to cut more than 10% of its full-time workforce as well as about 20 contractors. The Sunnyvale, Calif., company had 419 employees at the end of 2013 and reduced about 18 positions in the first half of 2014 under a cost-reduction program.
Meru also said it hired Deutsche Bank to advise the company on strategic options, potentially including a partnership, sale or merger.
Additionally, Meru said its vice president of sales for North America, Kevin Coppins, will resign effective Jan. 12. Tom Palomaki, vice president of worldwide support and services, will replace Mr. Coppins.
Meru expects to report fourth-quarter revenue of $21 million to $22 million, compared with previous guidance of $23 million to $27 million.
Investment firm Castle Union LLC reported a 5.7% stake in Meru in May. The firm said it was concerned about the company's "consistent underperformance" compared with peers and called for the company to pursue a sale process.

Write to Josh Beckerman at [e-mail]

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