Quarterdeck sees profit within 2 quarters
MARINA DEL RAY, Calif., July 31 (Reuters) - Software maker Quarterdeck Corp., which launched a restructuring last month, said Friday it expects to return to profitability within two quarters.
''We have taken steps to significantly lower the company's breakeven point by scaling down to the core business, replacing five vice presidents and lowering head count by over 25 percent,'' Quarterdeck interim president King Lee said in a statement accompanying the company's third quarter results.
''With these expense reductions and the refocus of the business, we expect Quarterdeck to become profitable within two quarters,'' Lee said.
For the third quarter, Quarterdeck reported a net loss of about $14.75 million, or $0.27 per share, versus a profit of $1.05 million, or $0.02 per share, in the same period a year ago.
The third quarter results included a restructing charge of $2.7 million and $2 million in acquisition-related goodwill the company determined to be impaired. The company also raised its provision for sales returns from $3.7 million last year to $5.8 million in the current quarter in response to the slowdown in software sales.
Total revenues for the period fell to $13.8 million from $24.8 million a year ago.
''In spite of market conditions...retail software sales started to pick up in June,'' Lee said. ''We continue to expand our electronic distribution channels and are rapidly moving toward our strategy to refocus on the less volatile corporate segment with an emphasis on small to medium-sized businesses.'' |
