Informix makes big loss
Published: 08 Aug 1997 14:19 BST
The maker of tools and software for database management reported a loss of $120.5 million, or 79 cents a share, for the period, including a restructuring charge of $62.1 million related to job cuts and writedowns of certain assets.
In the second quarter of 1996, Informix earned $21.6 million, or 14 cents a share. Revenues slid to $164.7 million from $226 million over the same period.
The company and its auditors are determining how much revenue should not have been recognised in 1996. At least some revenue from the transactions being reviewed should have been deferred to later periods, the company said.
Based on reviews so far, Informix estimated that about $70 million to $100 million of revenue will be adjusted. The company said it will provide restated 1996 results as soon as possible.
``We have applied our revenue recognition policies very conservatively in Q2, resulting in recording revenue only for products and services sold directly to end users or through our partners for identified customers,'' said Bob Finocchio, who was named chairman and chief executive officer in July.
The company also said it will cut another 10 per cent to 15 per cent of its work force in the third quarter, mainly in sales and marketing. The company cut 440 employees, lowering its work force to 4,190, in the second quarter. An unspecified charge will be taken to cover severance and asset write-downs.
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