RealTime IT News

Open Market Posts $6.4 Million Loss

Burlington, MA-based e-commerce and publishing software company Open Market Inc. posted a fourth-quarter 1998 loss of $6.4 million or $0.18 per share, including a $2 million restructuring charge.

That compares to a loss of $3.0 million or $0.09 per share for the same period of 1997. Net revenues were $16.1 million, compared to net revenues of $18.6 million for the fourth quarter of 1997.

For the year ended December 31, 1998, revenues were $62.1 million, compared to $61.3 million for the prior year. Net loss was $34.9 million or $1.04 per share, compared to a net loss of $58.0 million or $1.87 per share in 1997.

"We had a very solid fourth quarter, beating expectations for revenue and net loss, and making improvements on the bottom line compared to last quarter," said Gary Eichhorn, president and CEO of Open Market. "We accomplished a lot in 1998, broadening our leadership by expanding our footprint in the market, and setting the stage for long-term growth and profitability.

During the fourth quarter, Open Market implemented its restructuring plan to realign its cost base. Of the resulting $2 million charge, approximately 62 percent was employee related severance as a result of a 14 percent reduction in head count. The remaining costs were related to exit activities and certain asset impairments, the company said.