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.