Monrovia, CA July 24, 2001 e-Business integration provider SeeBeyond this week announced layoffs affecting 10 percent of its staff even as the company reported year-on-year revenue increases and narrowed losses in the second quarter.
SeeBeyond reported that its second quarter 2001 license revenue grew 164 percent year over year to $31.4 million. Pro forma revenue grew to $50.6 million, a 118 percent year-over-year increase and a 1 percent increase over first quarter revenue of $50.3 million. Pro forma net loss for the quarter was $4.5 million, or $0.06 per share, compared with a net loss of $9.8 million, or $0.16 per share, during the corresponding quarter of 2000. Net loss for the first quarter of 2001 was $1.6 million, or $0.02 per share.
The company also announced the completion of a 10 percent reduction in its work force, from a total of just over 900. The company said the layoffs would result in an approximate $2.2 million one-time restructuring charge in the third quarter of 2001, or $0.03 per share.
We faced a very challenging economic environment this quarter, and due to the continued uncertainty of global IT spending levels, we are redoubling our cost containment measures," said Barry Plaga, senior vice president and chief financial officer for SeeBeyond. "Specifically, the reduction in workforce will bring expenses in line with our drive towards profitability and enable us to achieve our expected break-even levels in the fourth quarter of 2001.
Plaga said that SeeBeyond's balance sheet strengthened during the quarter, closing with $33.3 million in cash, up from $27.4 million in the first quarter of 2001. In addition, days' sales outstanding (DSOs) decreased to 77 days from 93 in the first quarter of 2001.
Reiterating previous guidance given during its first quarter 2001 earnings announcement, SeeBeyond affirmed its anticipated calendar year 2001 annual net revenue range of $200 to $210 million. The company expects to meet its breakeven targets, excluding non-cash charges for warrants, goodwill and stock compensation, in the fourth quarter of 2001.
The second quarter brought continued strength to our existing pipeline of Global 2000 customers, said Jim Demetriades, founder, chairman and CEO for SeeBeyond. "However, the current IT spending environment resulted in lengthened decision making processes by many global technology buyers.
SeeBeyond reported that during the quarter ending June 30 the company added 53 new customers, bringing total customer count to more than 1,520. The software provider also released version 4.5 of its eBI Suite of integration solutions.
The company, which trades as SBYN on the NASDAQ, has seen its stock fall from the low $30s about a year ago to about $7 today.