Restructuring Plan Boosts MarchFIRST

The company said it will concentrate on its top 500 clients, which together account for about 80 percent of its business, and "scale back sharply" its offerings for dot-com companies.

Revenue for the quarter will range from US$235 million to $250 million, and the loss per share will total 25 to 30 cents, the Chicago, Illinois-based company said. MarchFIRST will take a restructuring charge of $25 million to $35 million in the quarter to cover severance costs and other restructuring-related expenses.

Before the announcement, analysts were looking for the company to earn 7 cents per share in the fourth quarter.

By 2001, MarchFIRST said, growth should pick up. The company expects revenue to grow at a 6 to 10 percent sequential rate next year, totaling $1.2 billion to $1.3 billion for the year as a whole. Earnings per share for 2001 will be 25 to 35 cents, the company said.

"To address the changes in our marketplace and improve our operational efficiencies, we are executing a clear, focused and aggressive action plan," said chairman and chief executive officer Robert Bernard.

The realignment comes after a four-month study of the company's internal assets and long-term market opportunities. In addition to serving its top 500 existing clients, the company said it will look to gain business in industries that have high growth potential. Manufacturing, financial services, health care and telecommunications are among areas to be tapped, MarchFIRST said.

The company also plans to expand its presence in booming markets such as the Asia-Pacific region and Latin America.

The company said it may sell some of its "non-core" assets to raise cash. Other cost-cutting moves include centralizing the company's global operations, putting in place tighter management and financial controls, and cutting back on discretionary spending. Earlier this month, the company let go about 1,000 employees, or 10 percent of its workforce.

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