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Networking Device Maker Lantronix Restructures

Shares of Irvine-based Lantronix Inc., a maker of networking gear, slumped on Wednesday after the company said it’s set to start an overhaul of its business.

Investors didn’t take to the news, pushing shares down 7% on a day Wall Street saw its major indexes fall.

Lantronix had a recent market value of $46 million.

The restructuring plan is set to make Lantronix “operate more efficiently and position the company for profitability,” it said in a statement.

Lantronix said it plans cut 10 jobs from its sales, marketing, operations and engineering groups.

The move is set to save the company $2 million a year and make its reporting structure more efficient.

Lantronix said it expects to take charges of $700,000 to $800,000 for severance packages and other costs in the fourth quarter.

Lantronix makes small electronic devices that allow vending machines, thermostats, retail terminals, ATMs and others to be accessed via the Internet or other computer networks.

The company has been struggling of late.

Shares are down some 50% in the past year.

Last month the company received a delisting notice from Nasdaq for not meeting the minimum share price to trade on the exchange.

Lantronix has until Dec. 22 to have its shares trade at a minimum of $1 for 10 days in a row.

Former chief executive Marc Nussbaum stepped down back in September, after holding the post for five years.

After a few months of searching, Lantronix appointed Jerry Chase to the top spot in February.

Chase is a turnaround guy who hails from Santa Clara-based Terayon Communications Systems Inc., a maker of digital video software.

He streamlined Terayon’s businesses by selling two of its three unprofitable units, tripled its sales and last year sold the company to Motorola Inc. for $140 million.

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