Headline Feeds
MarchFIRST (Nasdaq: MRCH) was down 84 U.S. cents at $1.66 early Tuesday after the Internet consultant reported a big loss for the fourth quarter ended December 31st, and said it expects a loss for the first quarter of this year as well.
"We continued to see demand slow throughout the fourth quarter," said chairman and chief executive officer Robert Bernard. "We believe our clients are committed to their strategic business initiatives, yet concern over the recent economic slowdown has caused them to spend cautiously."
The company reported revenue of $213.5 million for the quarter, a loss before charges and other costs of $73.2 million, or 40 cents per share, and a net loss of $6.8 billion, or $37.09 per share.
The net loss for the latest quarter included accounting charges to eliminate assets "impaired as a result of the dramatic market shift and economic slowdown, including the dot-com collapse," as well as a charge to cover recent job cuts.
MarchFIRST said it expects another charge of about $130 million to first-quarter earnings, to cover the balance of the costs for restructuring and job cuts. The company expects a loss of 22 to 31 cents per share on revenue of $190 million to $215 million for the quarter.
The company recently cut 2,100 employees, closed its Montreal, Canada office, consolidated its office in Pittsburgh, Pennsylvania, and canceled plans to open in New York City and San Francisco, California.
The moves, along with other cost-cutting measures, should save some $300
million to $400 million a year, the company said. MarchFIRST said it expects
to reduce capital spending to about $15 million this year from $173 million
last year.
Talkback: 
