Banyan Systems Inc, of Westborough, Massachusetts warns that it expects to record a pre-tax charge of between $3m and $5m in the current quarter to cover the cost of an executive management realignment and corporate restructuring. It is cutting about 100 jobs, 15% of the workforce and closing some facilities. The company is also looking for a new chief executive after David Mahoney, who has been chairman, president and chief executive was shunted aside to the post of vice-chairman. Jeffrey Glidden, senior vice-president and chief financial officer since 1991, is acting president and chief operating officer. Banyan also plans a substantial reduction in its worldwide channel inventories, and expects to decrease product ships to resellers by about $7m to $10m, leading to lower revenue and a loss for the current quarter. It also expects to take a non-cash charge for previously-recorded deferred tax assets against fourth quarter figures. With the decline in its network operating system business, Banyan has not exactly been prospering for some time, and a year ago, it recorded a fourth quarter loss of $17.3m or $1.03 a share, and that included restructuring charges of $11.1m, or 66 cents a share. Revenue was $28m for the quarter.
