SONICblue streamlines

By Susan Rush
From The September 6, 2002 Edition Of CED Broadband Direct

The turbulent times continue at SONICblue Inc. The latest: the company is shedding 25 percent of its staff, including two senior executives.

Roughly 400 employees will receive their walking papers, among them Roger Hackett, senior vice president of sales, and Andy Wolfe, chief technology officer. The cuts are expected to be completed by the end of the year.

In conjunction with the announcement, SONICblue said it will consolidate certain functions of its Scottsdale, Ariz. and Tigard, Ore. facilities into its Santa Clara, Calif. headquarters.

"We are eliminating redundancies and reorganizing synergies within the organization wherever possible, which we believe will allow us to significantly reduce our cost structure," said Greg Ballad, SONICblue's interim CEO. Ballard was named CEO last month after the company abruptly fired Ken Potashner. At the time of Potashner's departure, Ballard denied reports that Potashner was let go over allegations leveled against the board.

On another front, SONICblue has been battling Hollywood heavyweights for months now over whether its personal video recorder ReplayTV devices violate copyright laws and are detrimental to the movie studios' advertising revenue.

SONICblue's shares were trading at 28 cents at one point in early trading, which is well off their 52-week high of $5.49.