Informix Software Inc. has posted a US$140.1 million loss for its first quarter, detailing restructuring moves that officials hope will bring the company back in the black.
Informix had warned investors last month to expect up to a $74 million revenue drop and a huge loss for the quarter. To improve its performance, Informix is trimming some operations that do not bring in enough revenue, according to a company statement. Those cuts, which it has yet to detail, will lead to a restructuring charge in the second quarter but are expected to save money in the long term, officials say.
Informix has also announced that its chief financial officer, Alan Henricks, has decided to resign after only four months on the job. Henricks was not available for immediate comment.
The loss, equivalent to 93 cents per share, was on revenues of $133.7 million, a 34% drop from the $204 million posted during the same period last year. The loss includes a one-time charge of $7 million related to the acquisition of Centerview Software, as well as a one-time charge of $30.5 million from the write-off of goodwill and other assets, officials say.
On April 1, the company warned investors to expect revenues in the $130 million to $145 million range, as well as to expect substantial operating and net losses. Officials today blamed the slump on unexpectedly weak sales in Europe and a lack of focus on its core relational database offerings, as it delved into new object relational database products. North American revenues dropped 15%, to $69.1 million, down from $81 million during the same period last year. European revenues dropped 57 percent to $36.5 million, down from $84.8 million during the previous year.
Informix outlined plans today to restructure its sales and marketing groups, to try and improve its focus on customers and cut out any duplication of efforts.
In North America, it will combine its sales group with its channels and partners group. That will give it a single sales force in the region, headed by Martin Brauns, vice president of North American sales. Its Enterprise Services group will also be folded back into the sales organisation.
Informix's Steve Sommer, vice president of Enterprise Solutions, will oversee the company's industry marketing and data warehouse business development.
The company will transfer its customer service and product marketing into the division led by Mike Saranga, senior vice president of product management and development, officials said. Jeff Hudson, vice president of business development, will focus on Informix's Universal Server.
Informix, in Menlo Park, California, can be reached on the World Wide Web at http://www.informix.com/.