Stock Watch: Predicted Loss, Job Cuts Sink Open Market

Open Market, Inc. (Nasdaq: OMKT) slipped 21/32 to 3 9/32 Tuesday after announcing an expected third quarter loss and a restructuring that includes job cuts.

Open Market, a Burlington, Massachusetts-based e-commerce software maker, said it expects a loss of at least 25 cents per share for the quarter, while revenue is not likely to top $23.5 million. According to the company, continuing decline in sales of its Transact software, as well as an ongoing realignment and expansion of the North American sales force, held results back.

The restructuring, which will result in a charge of $6 million to $7 million in the fourth quarter, includes 150 job cuts, covering 80 employees and 70 contractors. The cuts will reduce expenses by $3 million to $4 million per quarter, Open Market said. The goal of the plan is to bring the company to profitability by the second half of next year.

Open Market also said that it is in talks to sell its ShopSite online storebuilder product, as part of a strategy to focus on higher-margin services.

Leave a Comment

Please sign in to post or reply to a comment. New users create a free account.

Elon Musk's Dec. 2 action to release The Twitter Files: Approve or Disapprove?
Loading ... Loading ...

Technewsworld Channels