Rockville, MD June 28, 2002 Supply chain software company Manugistics Group this week reported a net loss of $27.1 million for its first fiscal quarter, even as it said that its president was taking an indefinite personal leave of absence.
With software revenues declining year-on-year by 46 percent, to $24.5 million this past quarter, versus $45.1 million for the same period last year, the company reported an adjusted net loss of $18.4 million, compared to $2.2 million for the previous year.
Total revenues for the first quarter were $74.6 million, slightly higher than the company had estimated in its pre-announcement, against total revenues of $92.4 million for the same period in the prior year, representing a 19 percent decline.
In a company statement, Greg Owens, Manugistics' chairman and CEO, admitted he was "disappointed" with the company's results, which he blamed on the current downturn in tech spending. "Unfortunately, at this time, companies are deferring large capital expenditures," Owens said, while adding, "I am confident, however, that the demand for Manugistics' solutions will return as the economy improves."
Owens predicted that total revenue for the second quarter will be down from Q1, but he asserted that "aggressive cost reduction initiatives" would help reduce the company's adjusted operating loss for the quarter currently underway. Manugistics has announced it would cut approximately 12 percent of its workforce and contractors across the organization, consolidate some smaller field offices and implement mandatory unpaid vacation for all U.S. employees during the first week in July. European employees are due for an unpaid week of leave this quarter, too.
Meanwhile, Manugistics announced without elaboration that its president, Richard Bergmann, has taken an indefinite personal leave of absence. A company spokesperson told Reuters that the company's sales and service units, which had reported to Bergmann, will report directly to Owens for the moment.