Palm had planed to acquire Extended Systems in a stock deal, but a drop in th value of Palm's stock caused the deal to fall through. The restructuring that Extended Sytems is currently going through was expected as part of the Palm deal, and the company says it will continue with its restructuring plans even though the Palm deal has fallen through.

The Troy Group, an Irvine, California based company, has agreed to purchase Extended Systems print server business. Terms were undisclosed, but the Troy Group will hire 38 Exteneded Systems employees as a part of the deal.

Extended Systems says that they are going to cut 50 jobs, or roughly 15 percent of its workforce in an attempt to cut expenses. The company expects the job cuts to save between 15 to 20 percent by the end of the September quarter.