Vignette (Nasdaq: VIGN) was up 51 U.S. cents at $4.38 in morning trading Monday, after the e-commerce software makersaid that results for the first quarter ended March 31st will meet analyst expectations.
Nevertheless, revenue fell short ofcompany projections, the Austin, Texas-based company said.
Vignette said it expects revenue of about $90 million and a “core net loss” of a penny per share, in line with analyst forecasts. The figure excludes charges fordeferred stock compensation and intangibles, research and development andother items.
“While our revenue is within the range of financial analyst estimates, itdid not meet our own expectations,” said Vignette chairman and chief executiveofficer Greg Peters. “However, because we identified the changing economicclimate early and took steps in January to lower our cost structure, we wereable to manage our business and our operational costs appropriately duringthe quarter.”
With about $420 million in cash on hand at quarter’s end, “we are extremelywell-positioned to extend our leadership position,” Peters said.
In January, Vignette announced a cost-cutting plan that included laying off workers and consolidating operations. Theplan will result in a charge of $45 million to $55 million to first-quarterresults, though it is designed to save about $100 million over the next fourquarters.
Also in January, Vignette reported a 203 percent year-over-year rise infourth-quarter revenue, to $123.9 million, but saw its net loss widen to$138.7 million, or 60 cents per share, from $5.63 million, or 3 cents. Thecore operating loss totaled $6.3 million, or breakeven per share.
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