McData Unloads Manufacturing Plant

Data storage equipment maker McData has announced it is selling its Lumberton, N.J., manufacturing plant to IT manufacturer Solectron . The two companies also agreed to a new outsourcing deal.

McData $235 million acquisition of Computer Network Technology (CNT) in January triggered the moves. Milpitas, Calif.-based Solectron will take control of the former CNT facility and 123 employees next week and will produce all CNT-branded gear.

It was a comfortable choice for Broomfield, Colo.-based McData, which
already uses Solectron to produce its Sphereon and Eclipse product lines.
Financial terms of the pacts were not disclosed.

“The agreement completes McData objective to outsource CNT manufacturing
operations significantly ahead of plan and allows us to expand our
relationship with a very reliable and high-quality manufacturing partner,”
John Kelley, McData president and CEO, said in a statement.

It also moves McData closer to its goal of cutting its workforce by July 31
to save money. “McData and CNT combined had about 2,100 employees,” Jil Backstrom, a McData spokeswoman, said. “Our goal is to get to 1,600 to

McData also announced management changes. Scott Berman, who has served as
treasurer and vice president of finance since December 2002, is the new
CFO. He replaces Ernest Sampias who is leaving to pursue
other opportunities, the company said.

McData also said Jean Becker, senior vice president of engineering, has
resigned. Becker will remain through September to help with the transition.

Finally, the company will re-establish the role of COO to sharpen its
operational focus. The COO will be responsible for sales, marketing service,
manufacturing, engineering, quality and information technology.

“McData has been actively interviewing for this position and expects to
announce who will fill this role in the very near term,” Backstrom said.

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