Software vendor Informix has detailed plans to split itself into two companies as part of a strategy to improve its recent lacklustre performance.
The two firms will be Informix Software, which will focus on providing database management systems, and an as yet unnamed concern which will market ebusiness software that works with rival database products, as well as those from Informix.
Both companies will initially be wholly owned subsidiaries of Informix, with the goal being to create two publicly traded companies.
The announcement accompanies the resignation of Robert Finocchio as chairman of Informix - a position that has been assumed by Peter Gyenes, the company's recently appointed president and chief executive.
Last month Informix said it would consolidate its five business groups into two operations: database business operations and solutions business operations. These form the foundation for the two new operating companies. The plan involves the loss of at least 500 jobs at Informix, or about 12 per cent of its workforce.
Informix said it expects a current quarterly revenue run rate in the range of $200m to $215m, with the newly defined Database and Solutions businesses accounting for about 85 per cent and 15 per cent respectively.
Based on the revised revenue outlook, the company expects to report an operating loss of five to eight cents per diluted share in the third quarter before transition charges and previously announced non-recurring items of $75m to $90m. Informix expects to return to profitability in the first quarter of 2001.
The company blamed year 2000 factors, an under-performance in sales and swings in foreign exchange rates for its recent disappointing results.
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