724 Solutions extends cutbacks as revenues slip

724 Solutions extends cutbacks as revenues slip

Toronto-based mobile software provider 724 Solution is to institute a further rounds of job cuts as fourth quarter revenues slide by as much as 25% below expections.

In preliminary fourth quarter results, the company anticipates revenues for the to be approximately $5.6-$6.0 million, below its previously stated expectations of $7.0-$8.0 million. Revenues for the fiscal year ended December 31, 2001 are expected to double to $43.6-$44.0 million, compared to $21.2 million for the prior year.

724 Solutions says it will extend the restructuring which began in the spring of 2001, resulting in an additional 20 percent reduction in annualised operating expense from previously announced levels. These will include cuts in jobs, facilities and other operating expenses, and will be implemented this quarter.

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