Vantive has rejigged its management structure in an attempt to improve on its preliminary second quarter results that were well below Wall Street's expectations.
The helpdesk applications supplier has eliminated the post of chief operating officer (COO) to try and make senior management more directly accountable to Tom Thomas, its chairman and chief executive, who took the reins in April.
As a result, Philip Dunkelburger has resigned as president and COO, although he will remain in place during the next quarter to smooth the transition.
Thomas said: "Our problem has been consistently executing on our programmes so we're tightening the ship. Tightening our reporting levels enhances our ability to execute and take decisions more quickly. I'll be taking my senior management off site over the next two weeks to work out an operations plan, but the foundation is already in place."
He continued: "I've spent the last two months evaluating the business and the time to act is now. It's not a quick fix situation, but the rewards will be tremendous. But a COO in a company like Vantive is not required. Multilevel management is not appropriate because I need to get closer to the business and the customer."
For the quarter ended 30 June, Vantive said that it expects to see revenues increase by about 27 per cent to between $47-49 million. But it also anticipates a net loss of between $0.12-14 per share, including a restructuring charge of about $0.07 per share.
The First Call analysts' consensus had expected earnings of $0.04 per share.
Thomas said the restructuring charge related to the firm's decision to discontinue implementing various applications inhouse, under projects that had been approved by his predecessor.
He added that it also related to severance, but refused to disclose how many staff would leave the company. However, there was no lay off programme in place, he claimed.
Thomas also refused to elaborate on when the company might move back into profit, but said that he would try and keep operational costs constant until "revenues kick in".
He added that the firm was undertaking a stock repurchase programme, authorising it to buy up to $10 million of its common stock on the open market at prevailing market prices, to show its continuing confidence in the business.
Vantive's shares closed down $3.0937 on Thursday at $9.7188 following the news.
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