Engage Says Restructuring Is Beginning to Bear Fruit
The Andover, MA, company said in mid-January that it expected to post revenue of $25 million and a loss per share of 28 cents. It also said it would lose no more than $55 million in the quarter.
"This is an indication that our restructuring is starting to pay off," said Tony Nuzzo, Engage's president/CEO.
Engage did not say by how much it expects to exceed its second quarter revenue figure. It noted that final results will be released March 12.
The company said Jan. 4 that it would eliminate nearly 50 percent of its work force, or about 550 positions. Those cuts, which are expected to be completed by April, will be achieved through attrition, job elimination and layoffs. Engage, however, did not specify how many jobs would be eliminated outright and how many would be reduced through attrition.
As a result of this restructuring, the company said it expects to incur charges that would reduce its cash on hand by between $17 million and $20 million. Engage said it had nearly $86 million in cash on hand Dec. 31, which it expects to be sufficient to fund its business until it reaches profitability.