WebMethods Reduces Outlook, Plans to Cut 15% of Work Force
A WALL STREET JOURNAL ONLINE News Roundup
FAIRFAX, Va. -- WebMethods Inc. cut its fiscal first-quarter outlook and said it will reduce its staff by 15%.
WebMethods Lowers Guidance, Cites Pullback in IT Spending (April 5)
A company spokeswoman on Friday said the company currently has 1,063 employees.
The software maker said it expects to report a first-quarter loss of nine cents to 10 cents a share, excluding stock-based compensation, goodwill amortization and other charges, on revenue of about $55 million. The quarter ends June 30.
The company blamed "challenging economic times" and said that sales cycles are lengthening as customers continue to defer spending decisions.
WebMethods said it plans to reduce spending across all major areas, including the staff cuts. The enterprise software provider expects to incur a one-time restructuring charge during its fiscal second quarter.
Analysts surveyed by Thomson Financial/First Call were expecting a loss of two cents a share, excluding goodwill amortization, for the quarter. WebMethods lost $6.6 million, or 20 cents a share, on revenue of $15.6 million, a year earlier.
WebMethods' business-integration software links a company's computer systems to those of its suppliers and customers, making inventory and procurement more efficient. |
