Art Technology Group Cuts Estimates, Workers
Art Technology Group (NASDAQ:ARTG), an e-business software maker, will lay off about 220 workers, 20 percent of its staff, in a
restructuring and miss second-quarter financial targets.
The move comes less than three months after the Cambridge, Mass., company cut 12 percent of its workforce. The most recent round of pink slips will take place throughout ATG’s 25 offices.
“After a comprehensive operating review, we have made the decision to aggressively adjust our organization to address the current market environment,” said Jeet
Singh, ATG’s CEO said in a statement.
Singh said ATG fell short of targets because of “continued weakness in domestic IT spending and a slowdown overseas.”
For the quarter, ATG expects a net loss (excluding restructuring charges) of 17 cents to 19 cents per share, compared to a 4 cent profit in the year-ago period and
net loss of 19 cents per share in the first quarter of 2001. With restructuring charges of $44 million, net loss will be between 61 cents and 63 cents per share.
Revenues are forecast at $34 million to $35 million, compared with $32.6 million for the same period last year and $42.8 million in the first quarter of 2001.
To improve efficiency, ATG has combined its sales and services organizations under Bernard Bailey, senior vice president of global field operations. Lauren Kelley
will move into the newly created position of senior vice president of strategic development, to help strengthen ties with partners.
The disappointing results prompted an ARTG sell off. Shares sank 1.05, or 18 percent, to 4.75 at midday. In the last 52 weeks, the issue has ranged between 4.05 and
126.875.
Reprinted from boston.internet.com.
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