Brainpower slows losses as revenues continue decline

Brainpower slows losses as revenues continue decline

Dutch analytics vendor Brainpower has narrowed third quarter operating losses but failed to halt a continued slide in revenues.

Revenues equaled €1.42 million for the third quarter, down two per cent from second quarter revenues of €1.46 and down 22% from the year ago period. EBITDA losses before restructuring costs equaled €1.11 million, an improvement over the €1.46 million loss reported in the second quarter and €1.54 million losses chalked up in Q3 2002.

The company, which reduced staff numbers from 82 to 74 during the quarter, incurring restructuring charges of €60,000, has warned that continued cost reductions are targeted in all areas of the business, including sales and marketing, R&D and general admin.

Rocco Pellegrinelli, chairman and chief executive officer of Brainpower, says the company expects a stronger fourth quarter aided by the launch of two new products, including a new hedge fund module and a system for powering the advisory business of private banks.

"The release of both products shows Brainpower's commitment to a growth strategy based on breadth and innovation," he says. "Both new products will help our company strengthen our offer and to expand in more market niches. The early reception amongst our customers has been extremely positive."

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