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Ditech Networks fired workers in August

Ditech Networks, the Mountain View maker of equipment used to enhance voice quality and cancel echo in phone calls, “undertook a reduction in force” as it tried to “further reduce its operating expenses”, the company revealed Monday when it filed financial results for its fiscal 2009 first quarter.

The company provided no details about how many workers were let go, but in early August, when the company first warned that its first quarter results would be weaker than expected, the company said it was taking steps to reduce expenses by about 20 percent.

This would be the second round of layoffs in the last year. Ditech let go of about 23 percent of its workers in the fiscal 2008 second quarter ended Oct. 31 and finished its fiscal year on April 30 with 148 employees, down by about a third from the year before.

The company reported sales of $4.5 million for its most recent quarter ended July 31, down by more than two-thirds from the year-before quarter. The drop was blamed partly lower sales to its biggest customer, Verizon, which is “shifting focus away from their traditional wireless network deployments, where our product has historically been installed, to newer 3G networks.”

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