Youbet.com, Inc. (Nasdaq: UBET) was down 23/64 at 51/64 Tuesday after announcing that it will lay off nearly 30 percent of its workforce and that its president has resigned. In all, 34 jobs will be cut.
The company said it is attempting to conserve cash so it can proceed with the ongoing aggressive development and expansion of its core horse-racing business.
"We have taken these necessary steps in our efforts to be conservative in our operating expenditures while maximizing our resources for greater efficiency," said chairman and chief executive officer Robert Fell.
Los Angeles, California-based Youbet.com offers members racing statistics and streaming video of horse races from 61 tracks across the United States. However, by law, Youbet.com members can only place direct bets with one U.S. race track. The company is working to expand its ability to facilitate online wagering.
A.L. Frank, president and chief operating officer since February, left the company as part of the restructuring plan, the company said. Executive vice president Ron Luniewski will take over as COO.
One of the company's directors, Alan W. Landsburg, also resigned, because his recent appointment to the California Horse Racing Board requires him to resign from all other boards of directors, Youbet said.
Youbet shares are down from a 52-week high of 7 3/8. The company reported a
net loss of US$4.0 million, or 20 cents per share, for the third quarter,
compared with a loss of $7.2 million, or 38 cents, in the same period last
year. Revenue rose 23 percent to $1.4 million.
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