FTP Software expects to take a $6 million to $9 million charge in the third quarter, as it realigns its corporate focus.
The charges will come from discontinuing several product lines and businesses in Campbell Services, an FTP wholly-owned subsidiary, said Jack Warnock, an FTP spokesman.
Some of those products include FTP's On Time calendar and scheduling software, and its GroupWorks groupware.
The technology from these products, however, may find their way into other FTP products as the company shifts its focus to a new line of networking software.
"We formed Virtual IP Network, which is a strategy to define a network with software, rather than hardware like routers and hubs," Warnock said.
This change in focus comes at a time when Microsoft and Lotus have given the company stiff competition with their product lines.
FTP also expects to take an additional charge from its $60 million acquisition of Firefox Communications, a software maker, last July. Warnock said the exact charge is still under review.
The company reported a $13.1 million net loss in the second quarter, compared with profits of $9.3 million a year earlier. Its third quarter results last year included net profits of $4.8 million.