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FileNet reports second-quarter loss

One-time charges for consolidating engineering and marketing operations, and for layoffs, drag the document management company into the red.

Citing one-time restructuring charges, FileNet (FILE) today reported a net loss for its second quarter.

The document management company posted a loss of $3.85 million, or 25 cents per share, for the quarter ending June 30. A year ago it posted a net profit of $2.5 million, or 15 cents a share.

But excluding charges for consolidating the company's engineering and marketing operations, along with layoffs, FileNet would have posted a profit of $500,000, or 3 cents a share.

FileNet said earlier this month it expected losses for the second quarter to be about $3.8 million, or 25 cents per share, including the restructuring charges of $6 million.

Meanwhile, the company's revenues dropped to $62.4 million for the quarter, from $64.9 million for the same quarter last year. Software revenue dropped to $31 million from $33 million in the year-ago period, as did hardware revenue to $8.11 million from $11.8 million. Services revenue, however, rose to more than $23.2 million in the quarter from $20 million last year.

"As I stated in our July 9, 1997 preliminary release, domestic orders in the second quarter improved compared with first-quarter levels, while European business remained weak," said Ted Smith, FileNet's chief executive officer, in a statement. "The expense reduction actions taken in the second quarter together with improved orders enabled our return to profitability."

FileNet's stock closed up 3/8, at 19-5/8.