Software Maker Open Market Cuts 150 Jobs

Internet software maker Open Market Inc. Tuesday announced that its third-quarter earnings will be below Wall Street expectations and said it will eliminate 150 jobs as part of restructuring plans.

The Burlington, Mass.-based company said sales won't surpass $23.5 million, and operation losses will be at least 25 cents per share, according to a statement. Wall Street analysts expected losses would be 14 cents per share, according to First Call/Thomson Financial in Boston.

The lower-than-expected earnings stem from the continued decline in revenue from Transact, a transaction processing software for the Web, and the ongoing realignment and expansion of Open Market's North American salesforce, the company said.

Open Market will also implement a restructuring plan, cutting 150 employees from its workforce of 650. It will record a restructuring charge of $6 million to $7 million in the fourth quarter.

It is also in talks with interested parties to divest ShopSite, an online store-building product, the company said.

A final earnings report will be released Oct. 19, and Open Market will provide more details about the restructuring at that time.

In July, Open Market announced a second-quarter loss and Ron Matros resigned as the company's president and CEO. The company posted $7.4 million in losses on $26.5 million in sales for the second quarter.

Join the newsletter!


Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

More about First CallOpen MarketThomson FinancialWall Street

Show Comments