Peritus Software Services, Inc. Announces
Restructuring
BILLERICA, Mass., Dec. 2 /PRNewswire/ -- Peritus Software Services, Inc. (Nasdaq: PTUS - news), a provider of
solutions for software maintenance, today announced additional restructuring plans. The restructuring will include the
reduction of approximately 45 employees from its current workforce. The restructuring charges related to the employee
reduction and related facilities expenses to be recorded in the quarter ending December 31, 1998 are expected to be
approximately $1.2 million.
In light of the employee reduction, the Company is reviewing its property, plant and equipment to determine if any changes
to depreciation schedules or carrying values are warranted. As of September 30, 1998, the Company's net book value of
property, plant and equipment was $5.2 million.
The Company also indicated that, including the above charges related to the employee reduction and related facilities
expenses but excluding any charges for adjustments to the net book value of property, plant and equipment, it expects to
incur a net loss for the fourth quarter of between $2.0 million and $4.5 million. This expectation is based upon the
information available to date.
Commenting on the restructuring, Dominic Chan, President and CEO said: ''We are making this reduction to reorient our
Company for transition to greater Outsourcing emphasis while satisfying our Year 2000 customers. While making these
cost and expense reductions, we will continue to maintain the resources needed to meet our client commitments.''
About Peritus
Founded in 1991, Peritus Software Services, Inc. is a provider of software maintenance outsourcing services. The Peritus
Software Asset Maintenance (SAM) offerings enable organizations to transform the maintenance process into an efficient,
cost-effective discipline that boosts productivity and performance. SAM offerings include customized services for
software providers, information systems organizations, and Year 2000 renovations. Peritus is headquartered in Billerica,
Mass. For more information, see the Peritus Web site at peritus.com.
This press release may contain certain forward-looking statements, which involve risks and uncertainties. The Company's
actual results may differ materially from the results discussed in such statements. Certain factors that could cause actual
results to differ materially from those discussed in such forward-looking statements include the risks described in the
Company's Annual Report on Form 10-K for the year ended December 31, 1997, the Quarterly Report on Form 10-Q
for the quarter ended June 30, 1998, and other public filings made by Peritus with the Securities and Exchange
Commission, which factors are incorporated herein by reference. |
