EMS has wider Q1 loss, cuts costs

greenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread

From Yahoo Y2K news <:)=

MILWAUKEE, April 14 (Reuters) - Business management software provider Effective Management Systems Inc. on Wednesday reported a larger fiscal first quarter loss, citing customers' Y2K concerns, and said it implemented a cost-cutting program which includes employee layoffs.

Company officials were not immediately available to provide details of the program.

``The whole industry has come into a bit of a state of suspended animation, and buy decisions just aren't occurring at previous rates,'' said EMS President and Chief Executive Officer Michael Dunham.

``I believe much of it is Y2K-related in that many companies don't want to add manufacturing-software implementations onto their plates right now, because they're still coping with Y2K-compliance issues. Some also are experiencing hesitancy about the future direction of the whole economy, in part due to the unknowns about Y2K,'' he said in a statement.

EMS reported a net loss of $2.2 million, or 53 cents a share, for the fiscal first quarter ended February 28, 1999, compared with a year-earlier net loss of $1 million, or 26 cents a share. First quarter revenues fell to $7.5 million from $10.2 million for the first quarter of fiscal 1998. Software license fees dropped to $3.2 million from $5.3 million.

-- Sysman (y2kboard@yahoo.com), April 14, 1999


Stock market's still going up though .... and yet, overall, business is going down? Wonder when the market will "catch up (down ?) with the business cycle?

-- Robert A. Cook, PE (Kennesaw, GA) (cook.r@csaatl.com), April 22, 1999.

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