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AvantGo narrows loss, to cut work force

The mobile device software maker reports a narrower-than-expected second-quarter loss but announces that it will lay off about 40 percent of its work force.

Software maker AvantGo reported a narrower-than-expected second-quarter loss and announced that it will lay off about 40 percent of its work force.

The Hayward, Calif.-based company on Wednesday reported a net loss of $4.3 million, or 12 cents a share, on revenue of $5.3 million. In the same period a year ago, AvantGo had a net loss of $13.9 million, or 43 cents a share, on revenue of $6.5 million.

Analysts were expecting a loss of 14 cents a share, according to a survey by First Call. The company, which makes software for mobile devices, had $37.6 million in cash and cash equivalents for the quarter ending June 30.

Excluding charges for amortization of deferred compensation, restructuring and other impairment charges, the company had a net loss of $3.4 million, or 10 cents a share.

AvantGo also announced that it will step up its focus on applications for mobile professionals and will reduce operating costs so that it can reach breakeven on a cash flow basis in the fourth quarter of this year. To do so, the company is cutting 40 percent of its work force, which totals around 200 employees, during the third quarter.

"While we continue to believe that large enterprises will adopt mobile solutions on a large scale over time, we are planning our business around only modest improvements in the market in the second half of 2002," AvantGo Chief Executive Richard Owen said in a release.