NetGenesis Posts Poor Q2, Cuts More Jobs

Thursday Jul 26th 2001 by Staff

Prodded by poor Q2 results, the Cambridge CRM software maker will lay off 43 employees, or 19 percent of its staff. It's the second round of firings this year.

By Staff

Prodded by poor second quarter results, NetGenesis (NASDAQ:NTGX) will lay off 43 employees, or 19 percent of its staff as the economic downturn continues to take its toll.

For the three month period, the Cambridge, Mass., customer relationship management software maker, reported pro forma net loss of $9.4 million, or 44 cents per share, compared to a loss of $5 million, or 25 cents per share for the year-ago period.

Including restructuring charges, net loss of $12.6 million, or 60 cents per diluted share for the second quarter.

Revenue dipped to $4.3 million from $5.8 million in the same period a year ago. The figure was up from the $3.7 million in the first quarter of 2001.

"As we now anticipate a slower market recovery than previously expected, we are more closely aligning our resources to our needs," said Larry Bohn, NetGenesis' president and CEO. "The decision to reduce the size of our staff was a difficult but necessary."

Despite the dismal results this year, Bohn maintained that the company has "the resources necessary to weather the current slowdown."

NetGenesis customers include British Telecommunications, Charles Schwab, Fidelity Investments, General Electric, Sun Microsystems, Time and Verizon.

Shares of NTGX rose 0.07, or 12 percent, to 0.65. In the last 52 weeks, the issue has ranged between 0.5 and 16.625.

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