Ask Jeeves Cuts First-Quarter Loss, Announces Layoffs

Share this article:
Ask Jeeves Inc. shaved its first-quarter net loss to $39 million, or $1.09 per share, from a loss of $47.2 million, or $1.48 per share, a year ago, the Emeryville, CA-based search engine technology provider said yesterday.


The company also announced cost-cutting measures, including laying off 75 employees, or 15 percent of its 550-person work force. Ask Jeeves eliminated 180 positions in December. Although the company expects to record a one-time charge of $2 million in the second quarter as a result of the layoffs, it ultimately expects the cuts to save $50 million for the year.


"The majority of eliminated positions are a result of the continuing improvements in the automation of our tools and technology," said Skip Battle, Ask Jeeves' CEO.


The company said its first-quarter revenue was $19.1 million, up from $17.8 million in first quarter 2000. Revenue from the company's Web Properties division, which includes its search engine technology, fell to $9 million from $12.3 million a year ago. Business Solutions revenue nearly doubled in the first quarter to $10 million, from $5.4 million a year earlier.


Ask Jeeves forecasts revenue of $17 million in the second quarter, evenly split between its Web Properties and Business Solutions divisions.


Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

IAB Tech Lab to Set Global Digital Marketing Standards

IAB Tech Lab to Set Global Digital Marketing ...

In looking to solve complex tech issues, the association opens up full membership to agencies and solutions providers.

Integration Meets Innovation in Planters' Digital Campaign

Integration Meets Innovation in Planters' Digital Campaign

The snacks brand found a healthy way to navigate today's world of digital marketing saturation.

USA Today Decides to Play Games for Real

USA Today Decides to Play Games for Real

It partners with game-maker Arkadium to add 60 new digital games to its site, offering advertisers more segmented breakdowns of players.