Business graphics software maker Micrografx said it has laid off 74 of its 187 staff and will combine some of its business units as part of a global cost-cutting effort.
Micrografx chief financial officer John Carradine said the company is looking for more financing to avoid bankruptcy and is considering another equity offering, or a sale or spin-off of part of its business.
He said one goal of the restructuring is to offset seasonally weak international revenue in the first fiscal quarter of the year.
Shares of Micrografx - which have fallen by 60 per cent this year compared with the same period in 1999 - dropped by 9/16 cents, or 24 per cent, to 1 3/4 cents in Nasdaq stock market trading on Monday.
In April, the company announced a net loss of $9.3m, or 81 cents per share, on revenue of $28.1m for the first nine months of its fiscal 2000, which ended on 31 March.
"Even in light of the cost reductions already initiated, if the company were to fail to acquire additional external financing it could result in severe operational difficulties," Micrografx warned in a statement. "Such difficulties could result in an additional reduction in the scope of operations or ultimately in a forced reorganisation or bankruptcy."
The software maker said it is confident that it will be able to obtain "the necessary revenue levels and/or additional funding necessary to operate the company in the near term".
The firm also said it would consolidate its enterprise process management operations into a separate business and combine all its technical graphics operations into another unit. The job cuts occurred mostly in Micrografx's headquarters in Texas, where the workforce now totals 113, down from 187.
Micrografx said other actions have been initiated that will continue to reduce the scale of the infrastructure to support a smaller, more decentralised organisation that focuses on its independent business units. The company is scheduled to report fourth quarter results on 5 August.
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