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System Software Associates Announces Fiscal Third-Quarter Restructuring Charge of $120 Million
Business Wire - July 07, 1998 09:00
CHICAGO--(BUSINESS WIRE)--July 7, 1998--
Actions Aimed at Creating Competitive Cost and Expense Structure;
Focus on Market-Driven Products
Will Set Stage for SSA's Return to Profitability
System Software Associates, Inc., (NASDAQ:SSAX) announced today that it will take a one-time restructuring charge of $120 million in the fiscal third quarter ending July 31, 1998.
The company said the actions are consistent with its previously stated plans to reposition, restructure and revitalize SSA.
The third-quarter charge includes a write-down of a portion of capitalized software driven by future product strategy, the elimination of jobs representing approximately 12 percent of the workforce, a 25 percent reduction of office space, and a recognition of warranty commitments.
"These one-time actions are being taken to help improve the financial and operational execution of SSA," said William Stuek, Chief Executive Officer and President. "In addition, it will sharpen the company's focus on serving our clients and markets around the world. We believe these actions will stabilize our financial performance and will return SSA to profitability in 1999."
Stuek noted that the company's restructuring initiative followed a thorough analysis of SSA's business model, which has been underway since April. |
