The Descartes Systems Group Inc., a provider of Web-based logistics management technology for transportation companies, said it expects to post a second-quarter loss and will lay off approximately 70 employees.
The Waterloo, Ontario-based company blamed its lower-than-expected revenue on deteriorating global markets.
The company said yesterday that it will lay off 10 percent of its workforce, or 70 employees, and take a US$3 million charge during the third quarter in an effort to become profitable.
In its statement yesterday, Descartes said it expects to report total revenue of approximately $19 million to $20 million for the second quarter ended July 31. Based on preliminary results, Descartes said it expects to post an operating loss of 11 to 12 cents per share and a net loss of 38 to 40 cents per share.
"We regret that despite our best efforts, the deterioration of global market conditions during this quarter affected the sales of licenses and, consequently, our financial performance, more than we had anticipated," said Chairman and CEO Peter Schwartz in the statement. "I am confident in Descartes' leadership position within this market and am committed to improving our financial results."
The company expects to formally report its second quarter results Aug. 21.