Shares of international computer networker Wang Global moved higher today after the company posted third quarter earnings that beat Wall Street estimates and said previously announced cost-cutting measures are on track
Wang stock rose 4.75 percent to 22.0625, and has traded as high as 32.25 and as low as 14.13 during the past 52 weeks.
Excluding $5.2 million in integration costs from Wang's acquisition of Olsy, the company reported a net loss of $6 million, or 21 cents per share. A consensus of analysts polled by First Call expected Wang to lose 25 cents per share for the third quarter. Including the charges, the company posted a net loss of $11.2 million, or 32 cents per share.
At the end of the September quarter, the company had cut 2,170 employees in a program aimed to cut a total of 3,100 workers by the end of 1999. The company reiterated its confidence in achieving $150-200 million in cost reductions, with earnings before interest, taxes, depreciation and amortization over $300 million in 1999.
"During the September quarter we made solid progress toward the achievement of the integration and transition goals that we set for ourselves," said Wang chairman and CEO Joseph Tucci. "At the same time, we were awarded over $700 million in new business."
Recent agreements include a contract with Independence Savings Bank to provide integrated solutions for customer service throughout its network of 33 branches in the greater New York City area.