Dallas January 13, 2003 Supply chain execution specialist EXE Technologies is reducing its workforce and making other cost cuts in a bid to reduce its red ink and return to profitability.
The headcount reductions will include approximately 50 employees and will affect the company's global operations. The cost reductions, when fully implemented, are expected to reduce quarterly costs and expenses by over $2 million, according to the provider.
Joe Cowan, EXE's president and CEO, pointed to continued operating losses incurred during 2002, a period of decreased corporate spending on technology that has hit many solution providers over the past year.
"I was brought to EXE by the company's board of directors in November 2002 to grow the company and return EXE to profitability," Cowan said in a statement. "As a result, it is imperative to further reduce our cost structure immediately to more closely align with our current revenue levels."
As a result of the cost reduction actions, EXE expects to record charges in the fourth quarter of 2002 between $2.5 million and $3.5 million. The company said it would disclose further details of the restructuring plan when EXE releases fourth quarter 2002 financial results, currently scheduled for January 30.
"Our global operations continue to be supported by a strong balance sheet, which has allowed us to downsize our cost structure while maintaining solid financial viability," Cowan said in the statement. "The restructuring plan, in combination with our strong financial position, should be a clear indicator to current and potential customers, as well as to our competitors, that we expect to continue to be a long-term player in the supply chain execution software industry."
EXE executed a one-for-seven reverse stock split at the beginning of this year in a bid to shore up its share price and avoid delisting by the NASDAQ. The company recorded a loss of about $3.5 million, on revenues of $16.7 million, for the quarter ending September 30, 2002.
