The across-the-board cuts are aimed at turning a profit by the fourth quarter, the company said. Other cost-cutting moves included the suspension of executive cash bonuses and reduction of executive salaries.
As a result, the company expects to record a nonrecurring charge of between $700,000 and $800,000 in the second quarter. The company said it believes these actions will reduce its overall cost structure by approximately $2 million per quarter beginning in the third quarter, or approximately $8 million annually.
"These decisions are prudent given the current economic uncertainties and our goal to achieve profitability in the fourth quarter of 2001," Marimba CEO John Olsen said in a statement.
Marimba launched Marimba.net in October 2000 to offer managed services, allowing companies to hand off many of their Internet-based technology functions such as content distribution, updates to applications, device management and application-performance monitoring.
The Mountain View, Calif., company was once considered a high-flying business and a pioneer in the once-hot market for so-called push technology. In the mid-1990s, push was seen as one of the first "killer applications" on the Internet. Companies such as Marimba and PointCast Network delivered information automatically to a PC according to programmed preferences, eliminating the need to surf Web sites to gather specific news or information.
Last week, Marimba announced a loss, excluding amortization of deferred compensation, of $4.2 million, or a diluted loss of 18 cents per share, on revenue of $11 million for the quarter ended March 31. That compares with a loss of $323,000, or 1 cent per diluted share, on revenue of $10.6 million in the year-earlier period.