Aspect Sinks on Job Cuts

Aspect Communications (Nasdaq: ASPT) dropped US$1.69 to $11.31 in trading Tuesday morning, as the customer relationship management company said it would cut its workforce by 160 people, or 6 percent.

San Jose, California-based Aspect said that the move -- part of a "continuing effort to optimize operations" -- would result in a charge of $4 million to $6 million to results for the first quarter ending in March.

"Aspect is very focused on improving the efficiency of our business and returning to profitability, and these actions are necessary to achieve these objectives," said chief executive officer Beatriz V. Infante.

"I remain confident in our overall business direction and strong customer demand for our products," Infante said. "However, our near-term visibility is being affected as the economic climate continues to deteriorate. We are now halfway through the quarter, and we are beginning to see evidence that the timing of our customers' purchase decisions is being impacted by the economic slowdown."

Infante said it is "difficult at this time to quantify" what effect the slowdown will have on first-quarter results. In the fourth quarter ended December 31st, Aspect reported pro forma revenue of $158.4 million, up from $146.9 million a year earlier. The company posted a loss before extraordinary items of $2.2 million, or 4 cents per share.

Aspect provides what it calls customer relationship portals: contact servers that allow businesses to manage customer contact transactions over wireless and wired networks. The company says its services are used by 74 percent of Fortune 50 companies.

Infante became chairman earlier this month, succeeding company founder James Carreker, who is retiring.