RealTime IT News

Mass. Firms Warn, Cut Staff

Three Massachusetts companies -- MatrixOne , Netegrity and Segue Software -- said they will miss quarterly financial targets and layoff employees as the tech slowdown, exacerbated by last month's terrorist attacks, drags on.

Product collaboration software maker MatrixOne will cut 100 employees and contractors, about 15 percent of its staff, as well as consolidate several field offices. The Westford-based company said the moves would result in a restructuring charge of between $3.5 million and $4.5 million.

"The deteriorating economic conditions which forced many global organizations to reduce or defer IT spending, coupled with the tragic events of Sept. 11, created the most challenging selling environment we have experienced in our company's history," said Mark O'Connell, MatrixOne's president and CEO.

Revenues for MatrixOne's first quarter are now expected to range between $23 million to $24 million. Net loss will likely be between $11 million and $12 million, or between $0.24 to $0.26 per share for the quarter.

Lexington-based Segue, a maker of the e-business reliability applications, said it eliminated 43 jobs, about 15 percent of its workforce, last month.

For the quarter just ended, Segue expects revenue of between $8.3 million and $8.7 million, compared to $9.5 million the previous quarter. It also anticipates that it will have $8.0 million in cash. It did not give earnings estimates.

Finally, Waltham, Mass.-based Netegrity said it will lay off about 8 percent of its workforce. The maker of e-business security software sees a quarterly loss of about $2.3 million to $3 million, including restructuring charges of $600,000. Revenues will be in the range of $16.5 million to $17.5 million.

"The events of September 11th had a profound effect on us, as we lost our valued friend and colleague, Jim Hayden,'' said Barry Bycoff, Netegrity's chairman and CEO. "The difficult economy, exacerbated by the recent events, led to deals being reduced in size or deferred."

Shares of MONE plummeted 31 percent on the warning. SEGU dropped 20 percent. And NETE bucked the trend and gained 25 percent.