Chordiant Posts Q2 Loss and Cuts Jobs

By ComputerWire Staff Computer Business Online - Friday, May 9 06:44 am

Customer relationship management software and services provider Chordiant Software has reported a net loss of $1.2m for the second quarter, against net profit of $5m a year ago. Revenue fell 25% to $24.7m.

The company said license revenue fell 74% to $4.8m, while services revenue grew 43% to $19.9m. Bookings fell 59% to $20.4m, and backlog of business fell 3% to $93.5m.

Steven R Springsteel, chairman and chief executive at Chordiant, said: "Our business this quarter continued to be impacted by the ongoing challenging macro economic environment, specifically in the financial services sector, which caused some of our customers to take a more cautious approach to IT spending thus elongating our sales cycles."

The company has implemented a plan to reduce its workforce by approximately 10%, cutting jobs across all parts of the organization, for which it expects to incur a one-time expense of approximately $400,000 in the third quarter.

Looking ahead, the company said for fiscal 2008 it expects revenue in the range of $112m to $117m.

"We continue to take a conservative stance to our outlook, specifically as it relates to North American and United Kingdom financial services markets but believe that the investments we have been making in alliances and geographic and vertical diversification will have a positive impact to our results in the second half of fiscal year 2008," Springsteel said.

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