Infinium Software cuts 18 percent of workforce

Infinium Software said Monday it will layoff about 18 percent of its workforce in its latest effort to cut costs and return to profitability.

Company officials said it will also streamline its management system, consolidate its marketing and development arms and cut expenses that aren't directly related to creating revenue.

Infinium (Nasdaq: INFM) shares were up 1/16 to 2 11/16.

"These initiatives are essential to keeping our costs in line with our revenues," said CEO Bob Pemberton in a prepared release. "This was an extremely difficult, and personally taxing decision to make. But, for the long-term betterment of Infinium, and acting in our shareholder's best interests, we are streamlining our structure and optimizing our sales processes to operate more efficiently and effectively."

In late July, Infinium said it would report a wider-than-expected loss in its third quarter.

In the quarter, it lost $8.2 million, or 64 cents a share, on sales of $21.9 million.

In the third quarter of 1999, it earned $402,000, or 3 cents a share, on sales of $29.2 million.

In March, Infinium said it would focus on the application server provider market by creating an independent operating company called Infinium ASP. ASPs offer applications over the Internet, cutting users' installation and maintenance time.

Its shares fell from a 52-week high of 8 5/8 in March to a low of 2 3/16 earlier this month.

The lone analyst following the stock rates it a "hold."

There is no First Call Corp. consensus estimate for the business software developer this quarter.