Wang Global beat Wall Street expectations for its December quarter, despite posting a loss after restructuring charges and expecting to increase job cuts to 3,100 by the end of the year.
The software and services supplier turned in revenues for the quarter ending December 31, 1998, of $1 billion, on profits of $88.3 million, or $0.47 per share compared with analysts? expectations of $0.31 per share. After restructuring and operating charges of $41.5 million, however, Wang Global generated a net loss of $16.4 million or losses of $0.43 per share.
Direct comparisons with the year ago figures cannot be made because the firm announced in August 1998 that it would change its fiscal year end from June 30 to December 31. However, for the calendar year, which ended December 31, 1998, it generated revenues of $3.1 billion, on earnings of $222.3 million.
Joseph Tucci, Wang Global?s chairman and chief executive, said: "We had anticipated strong revenues at year end and were quite pleased with topping the billion dollar mark. But we also recognise that our work isn?t finished. We have to stay focused on cost reduction, operating efficiencies and improved margins."
He reaffirmed the company?s previously stated aim of cutting costs by between $120-150 million, but said staff reduction targets had been upped to 3,100 by the end of the year from 2,300.
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