US-based banking systems vendor Sanchez Computer Associates has severed jobs and implemented broad-based salary reductions in an effort to reduce its cost base by $8 million annually.
The company, which last week signed a merger agreement with Fidelity National Financial, says it is looking to improve future operating margin performance after posting an annual net loss of $10.2 million, including a $9.5 million impairment charge, compared to 2002's annual net earnings of $3.9 million. This was despite recording a $3.4 million rise in annual revenues to $96.4 million from $93 million in 2002.
Fourth quarter revenues dipped by seven per cent compared to the year ago period and the company reported a net loss for the final quarter of $755,000, compared to net earnings of $2.1 million in Q2 2002.
Sanchez took a restructuring charge of approximately $1.3 million in the fourth quarter of 2003 "primarily related to employee severance costs".