Onyx warns of revenue drop

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Onyx Software has warned that its third-quarter revenue would fall short of Wall Street expectations and that it would cut costs by trimming jobs and pay. The company also said it would take restructuring charges in the third and fourth quarters.

For the quarter ended Sept. 30, Onyx sees a pro forma operating loss of $7 million to $8 million on total revenue of about $20 million. The company said it would provide per-share loss figures later this month.

Analysts had expected Onyx's per-share loss to be in the range of 10 cents to 17 cents on total revenue of $26.2 million.

"Many customers postponed purchasing decisions due to a deteriorating business climate, including the events of Sept. 11, resulting in our revenue shortfall," said Onyx chief executive Brent Frei. "Our effective control of expenses throughout the quarter partially offset the earnings impact of unexpected events,"

In an effort to further reduce expenses, the company said it would reduce its work force by 25% to about 460. Additionally, the company said it would pare base pay for some employees and tie a portion of executive pay to company performance.

Onyx has renewed a $15 million credit line with Silicon Valley Bank under more flexible terms.

About Onyx Software
Based in Bellevue, Wash., USA, Onyx helps companies create the seamless, branded customer experiences to forge competitive advantage and build real business value. Customers include American Express, Broadwing, Commerce One, Credit Suisse, Dreyfus, FirstWorld Communications, Portland Trail Blazers, Prudential Investments and The Regence Group.

Onyx Software

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