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.