By Ryan Naraine
With its net losses climbing from last year, Burlington, Mass.-based software firm RadView announced a workforce reduction that affected 20 percent of its staff.
RadView, a maker of Web-application testing and analysis software, has cut about 40 percent of its workforce since the second quarter of 2001. “These actions are expected to reduce our quarterly operating expenses by approximately $3.3 million, extend our cash resources, and improve our ability to achieve profitability.”
RadView said its net loss during the quarter reached $5.1 million, up from $3.3 million during the same year-ago period. For the first nine months of 2001, the company posted net losses of $15.9 million (97 cents per share), compared to $9 million ($1.39 per share) in losses for the first nine months of 2000.
RadView reported a sharp decline in revenues during the quarter when it raked in $1.7 million, down from $3.1 million in the same year-ago quarter. “RadView’s third quarter revenue results were well below expectations, significantly impacted by weak bookings in the month of September,” CEO Ilan Kinreich said.
“Despite the revenue decline, the cost savings programs implemented during the quarter allowed us to achieve a pro forma net loss better than our previous guidance.”