Lantronix to Lay Off 20% of Work Force

Lantronix Inc., said it would lay off more than 20% of its work force, about 50 employees, after recording a substantial loss.

The Irvine maker of computer network services, which is being investigated by the Securities and Exchange Commission for accounting irregularities, said the cuts are part of a restructuring program that will result in savings of $12 million a year and a charge of $3 million to $5 million in the current quarter.

Lantronix said its fourth-quarter net loss of $72.5 million, or $1.35 a share, was due mostly to one-time charges related to the impairment of goodwill and other items. In the year-ago quarter, Lantronix lost $5.8 million, or 15 cents a share. Revenue fell 10% to $11.5 million.

Lantronix also plans to forgive more than $4 million in loans to former executives, including $1.3 million to former Chief Financial Officer Steven V. Cotton and $3.4 million to former CEO Frederick Theil, who left the company this month. The company fired Cotton in May, when it acknowledged that it had inflated revenue by about $6.2 million.