CAD software vendor Autodesk has reported a 99 per cent drop in profit for its second quarter, forcing it to slash 10 per cent of its 2,700 strong workforce.
The maker of design software posted profit down to $389,000 or $0.01 per share, from $27 million or $0.49 per share, for its second quarter, ended 31 July, compared to the year earlier period. Revenue fell 11 per cent to $202.9 million, from $226.8 million.
However, the figures were an improvement on the first quarter loss of $17.4 million.
Carol Bartz, chairman and chief executive said that cost cutting measures were necessary, but painful, "in light of our financial results."
She said the company will focus on three areas: Desktop applications; enterprise wide and Web based applications and services; and expanding its core market by developing and investing in business to business and Internet solutions and services.
The company has had its share of difficulties according to analysts IDC. Earlier this year the launch of the euro currency caused inequalities in pricing across Europe, which forced Autodesk to abandon initial discounts for countries such as the UK.
It also has a very large installed base amongst Dos/Windows 16bit users, currently accounting for $66 million of its revenue, that is rapidly shrinking as it moves to newer operating systems. This is about 30 per cent of total operating environment revenue of $216 million for 1998, according to figures from IDC.
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