INCC Sees Charge, Reports Job Cuts
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Internet Communications Corp. (INCC), a communications systems integrator and network management company, said today it expects to take a substantial charge against Q1 earnings and has laid off a "significant" number of personnel.
The Colorado-based company announced year-end revenues today of $33.1 million and a net loss of $3.4 million. Of the $3.4 million net loss, or $0.64 per share for fiscal 1997, discontinued operations accounted for $1.2 million or $0.24 per share.
INCC said in a statement that revenues increased 25%, up from $26.5 million, due to the acquisition of Interwest Communications Corp.
The company reported that a combination of under-performing business units and the launch of a separate engineering services division led to revenues that lagged behind a sharp increase in expenses.
"Over the past two weeks, the company was restructured with significant reductions in personnel including elimination of redundant sales channels, management, and administrative departments," said John M. Couzens, interim president and CEO. "Our immediate goals are to maintain appropriate business controls, wisely employ cash flows, and position the business to realize its full potential."
INCC designs, implements, maintains, and manages customized wide-area and local-area networks for voice and data.