Adtech cites
slowdown,
lays off 30

President says the firm's
revenues may not recover until 2002

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By Tim Ruel
truel@starbulletin.com

Honolulu high-tech manufacturer Adtech confirmed yesterday it is cutting its local work force by about 10 percent, firing 30 of its employees.

The cuts hit administration, product marketing, engineering and assembly, said Alan Sguigna, newly appointed president of Adtech.

The company, founded in Hawaii in 1967 and bought by London-based Spirent plc in 1997, said it is consolidating common operations. Adtech is one of nine divisions of Spirent Communications.

Two weeks ago, Tareq Hoque stepped down as president of Adtech, citing irreconcilable differences with Spirent. Hoque, a son-in-law of the University of Hawaii professors who created Adtech, said yesterday that this is not what his family had in mind when they sold the company to Spirent.

"We're certainly disappointed to see a change in direction for the company here in Honolulu," said Hoque, who joined Adtech as president in 1999. Adtech has developed into a world-class competitor in its field, developing testing systems for network equipment, Hoque said.

Spirent is reported to be shifting jobs to Adtech's sister company Smartbits in Calabasas, Calif., which is northwest of Los Angeles. Sguigna, who formerly served as vice president of marketing at Adtech, declined to comment on what he called rumors and speculation.

"I fundamentally believe that Adtech will remain a very important piece of Spirent, although in a diminished capacity," said Hoque.

Adtech has formed a team to evaluate other ways to trim expenses, boost sales and make the company more efficient, and the goal is to not lay off any more employees, Sguigna said.

Adtech's revenues fell in the second quarter and may not improve until next year, Sguigna has said. Clients including Nortel Networks, Cisco Systems and Lucent Technologies have reported a drop in sales this year.

On Tuesday, Murray Hill, N.J.-based Lucent said it will cut 20,000 jobs in addition to the 29,000 positions already slated for departure, slicing its work force nearly in half.

Spirent has enacted a hiring freeze companywide, including at Adtech. In May, Adtech broke off negotiations with the state to lease land in Kakaako to build a research and development lab.

Adtech has since moved its engineering division to First Hawaiian Center from its cluster of offices in Kaimuki.

The freeze caps nearly four years of rapid expansion at Adtech. After Spirent bought the company in 1997, Adtech's work force grew to more than 300 employees from 65.

Hoque said he is pleased with his tenure at Adtech, and looks forward to starting another venture in Hawaii.