SAN FRANCISCO (08/09/2000) - Informix Corp. announced Wednesday it is to take a third-quarter restructuring charge of between US$75 million and $90 million.
The U.S. database and tools vendor also gave details of management and organizational changes that it hopes will improve both the company's market positioning and its relationship with its customers.
Effective Wednesday, the vendor has condensed its five business areas into two units -- database business operations and solutions business operations -- as a way to better focus its sales, marketing and development efforts, Informix said in a statement. The company also intends to support remote operations via a worldwide services group which will be in charge of Informix's customer and partner service strategy.
Mostly related to costs incurred by the new business structure, the company expects to take the $75 million to $90 million charge in its third financial quarter, which will end Sept. 30, 2000. Informix is due to release its third-quarter results during the third week of October, when the exact amount of the charge will be disclosed. The company is likely to take a further restructuring charge of between $10 million and $15 million during the first half of next year, Informix said in the statement.
Informix is hoping that the restructuring will lead to net annualized cost savings of between $70 million and $80 million.
The company also announced Wednesday that as of June 30, 2000, it was free of debt and had cash and cash equivalents of more than $300 million.
Change has been the order of the day at Informix of late, with the company appointing a new chief executive officer last month -- Peter Gyenes, formerly an Informix board member. Previously chairman, CEO and president of data warehousing specialist Ardent Software Inc., Gyenes joined Informix when the software vendor acquired Ardent earlier this year. [See "Informix Board Member Becomes Firm's New CEO," July 13.]In May, Informix brought on board a new chief financial officer, Yon Yoon Jorden, after the company's interim CFO, Charles Kane, quit to join portal software developer Corechange Inc. [See "Informix Brings In Fresh Blood for CFO," May 25.]Informix, in Menlo Park, California, can be reached at +1-650-926-6300 or via the Internet at http://www.informix.com/.