Briefs

April 5, 2001. The CRM industry has been hit by a wave of job cuts this week as the U.S. economy continues to struggle. Some companies also are warning of significant losses or less than expected earnings. Onyx Software, Firepond, Burntsand, and Kana Communications were among the companies making announcements this week.

Onyx Software (Nasdaq: ONXS), Firepond (Nasdaq: FIRE) and Canadian company Burntsand all announced job cuts, while Kana Communications (Nasdaq: KANA) set the table for more after a layoff announcement in February. Kana and Onyx also warned of significant losses for the current quarter.

All of the companies attributed their slowdown to the U.S. economic downturn, saying that an increasing number of their customers and potential customers held back from making purchases or signing licensing agreements with the specter of a slowing economy that threatens to worsen before it improves.

Action Figures

Bellevue, Washington-based Onyx expects first-quarter revenues of US$26 million to $27 million and an operating loss of between 31 cents per share and 33 cents per share. The company said it will cut 17 percent of its workforce, or 140 jobs, as it takes "decisive actions" to move toward profitability. Onyx's share price was down 22 percent to $5.25 late Tuesday. Its share price has plummeted more than 95 percent over the past year from a high of $32.19 in June.

Redwood City, California-based Kana expects revenues in the range of $24 million to $25 million and a net loss that could reach 43 cents per share. The company's net loss reached 19 cents per share in the first quarter of 2000. Kana, which laid off 220 workers in February in an effort to save $30 million to $40 million, said it will announce additional cost-cutting measures in upcoming weeks. Kana's share price fell 23 percent Tuesday to $1.03.

Waltham, Massachusetts-based Firepond is cutting its workforce by approximately 20 percent, or 170 jobs, as it copes with the "global slowdown in information technology spending" and completes its alignment with recent acquisition Brightware. The company said many of the job cuts will come from overseas operations. Firepond's share price tumbled 25 percent to $1.50 Tuesday.

Source: CRM Daily http://www.crmdaily.com/perl/story/8689.html