RealTime IT News

Net Perceptions Cuts 124 Jobs

Minneapolis-based personalization software company Net Perceptions Inc. is cutting 124 jobs, or nearly half its staff, and said it will post a first quarter loss that is worse than analysts expected.

The company said it expects to report a net loss for the first quarter of between $11.5 million and $12.5 million, before the amortization of intangibles, stock compensation expense and restructuring charges. That translates to a loss of 42 to 46 cents per share; analysts had expected a loss of about 29 cents a share.

Revenues for the quarter ending March 31 are expected to range between $2.5 million and $3.5 million, the company said.

The job cuts amount to about 46 percent of the company's staff. About 145 employees will remain after the layoffs. The company also said that it will be consolidating various (unspecified) company facilities.

"Though we continue to have strong results with our installed customers, we are seeing customers defer purchase decisions as a result of the current economic uncertainty," said Steven Snyder, Net Perceptions president and chief executive officer. "We are disappointed with our expected first quarter results and recognize the need to take immediate action."

The company said in February that it had begun the process of recruiting a new CEO and president. Upon selection of a successor, Snyder will serve as chairman of the board.

Net Perceptions markets precision merchandising and personalization infrastructure software that allows e-commerce companies to optimize product assortments, pricing and customer relationships. Customers include Best Buy, JC Penney, Kmart and Tesco.

The company'stock was down 37 cents at mid-morning to $1.18 per share; its 52 week high is $60.98