J.D. Edwards (Nasdaq: JDEC) jumpedUS$1 to $8.22 in morning trading Friday, after the software maker said itexpects results for the quarter ending April 30th to be “significantlybetter” than a year earlier.
The company also said that it laid off 400 employees, or 8 percent of itsworkforce, in streamlining operations.
Edwards said it expects revenue of $210 million to $215 million for thefiscal second quarter, including about $63 million in license revenue.
Earnings per share from “normalized operations” will be better than the 5-cent-per-share loss predicted by analysts, the Denver, Colorado-based company said.
“I’m pleased with the considerable progress we’ve made on the revitalization plan over the past 90 days,” Edwards chairman, president and chief executive officer Ed McVaney said, adding that action by company managers “has already delivered positive results.”
The company said that the job cuts will help it meet its target of saving $75million over 18 months. Among the other moves being made are consolidation ofEdwards’ “global operating theaters,” restructuring of field sales, service operations and the marketing division, and elimination of layers of management.
Edwards announced a management shakeup in February, appointing a new chiefoperating officer and chief marketing officer.
In March, the software maker barely topped analyst first-quarterestimates, posting income from “normalized operations” of $191,000, orbreakeven per share. Revenue slipped to $217.7 million from $231.7 million ayear earlier.
The company plans to report second-quarter results after the close oftrading May 23rd.