SciQuest misses 3Q estimates, restructures
Shares in the company were down 0.03 to 4.25.
The e-commerce operator came in with a pro forma net loss for the third quarter, before non-cash charges, of $15.1 million, or 43 cents per share. SciQuest reported a pro forma net loss, before non-cash charges, of $7.1 million, or 38 cents per share for the same period last year. First Call estimates called for a loss of 42 cents a share.
The First Call estimate was cut after SciQuest warned in early October of a greater loss per share and lower revenue for the third quarter.
Including cash charges, the net loss for the third quarter of 2000, was $25.8 million, or 89 cents per basic share. On a pro forma diluted basis, this net loss was 74 cents per share.
Revenues for the third quarter of 2000 were $19.7 million, up 54 percent sequentially from second quarter revenues of $12.8 million. Year over year, revenues from the third quarter in 1999 were $359,000.
In a separate statement, the SciQuest announced that it plans to restructure by refining the company’s strategic focus, streamlining its corporate structure and reducing operating costs.
The company will realign its resources into 3 operating groups, focusing on e-commerce, e-services and supply/logistics solutions respectively.
As well, the position of president will be eliminated and a company officer and director will retire within the next quarter.
Moreover, about 10 percent of the company's positions will be slashed, primarily in marketing, sales and general administrative areas. SciQuest will register a one-time charge of about $2.5 million in the fourth quarter of 2000 in connection with these changes.