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Technology Stocks : Inforte Corp. (INFT) -- Ignore unavailable to you. Want to Upgrade?

To: Glenn Petersen who wrote (46)	7/13/2001 7:21:50 PM
From: Glenn Petersen	Read Replies (1) \| Respond to of 65

From CRN.com: crn.com Inforte Earns Slight Profit, Cost-Cutting Under Way By Marie Lingblom, CRN Boston 11:59 AM EST Fri., July 13, 2001 Inforte managed to maintain a slight profit for its second quarter and hopes to avoid losses in upcoming quarters by calling for the voluntary resignation or leave of absence of 90 employees. The e-services company, based here, reported revenue for the quarter ended June 30 was $12.5 million, or 1 cent per diluted share. First Call estimates called for a break-even quarter. That compares with revenue of $16.4 million, or 15 cents per share, for the second quarter of 2000. "We are continuing to win projects," Inforte CEO Phil Bligh told investors during a conference call Friday morning. "Obviously, customers are continuing to spend some amount of money but the wins are not replenishing the streams that are ending." Bligh cited the economic slowdown as the "single reason for the decline in revenue." In response to the slowdown and in an effort to generate break-even or positive earnings, 90 employees--mostly junior-level consultants--were targeted and accepted an offer to take a leave or resign, he said. Individuals selecting the leave of absence will depart Friday and will receive compensation of between 20 percent and 25 percent of regular pay if they remain available to return to full-time service. Individuals choosing the voluntary resignation package will receive pay through the end of August. Bligh said employees have been told openly during the past month or so about the state of the business and the economic environment. The voluntary resignation or leave of absence program, he said, was discussed so everyone involved was aware well ahead of time. Bligh told investors the move was necessary to remain cash-flow positive. The program will leave Inforte with about 300 employees at the end of the third quarter. As of June 30, Inforte reported $85.3 million in cash. Looking ahead, executives predicted $10 million in revenue per quarter, and 0 cents per share in earnings, until current trends change. "We expect and will manage the business to break-even, period, until there are clear signs of a sustained definite turn in the economy and a sustained increase in information technology spending," Inforte CFO Nick Blodgett told investors. Still, Blodgett said Inforte expects full year 2001 results for revenue and earnings per share share to be $46.6 million and 8 cents, respectively. Bligh told investors no one really knows when this environment will substantially improve. "There was a consensus it would turn at the midpoint of the year," Bligh said. "That has changed to Q4, and that has changed to the first quarter of next year. No one is saying, 'Soon.' "