Cambridge Technology Partners Resizes Business in Its Effort to Return to Profitability.Business/Technology Editors CAMBRIDGE, Mass.--(BUSINESS WIRE)--Jan. 8, 2001 The Company Comments On Its Fourth Quarter Cambridge Technology Partners (Massachusetts), Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :CATP CATP Cambridge Technologies (stock symbol) CATP Coverage Acceptance Test Plan CATP Committee of Adaptation to Technical Process ), a global e-Solutions provider, today announced that it is lowering revenue and earnings expectations for the fourth quarter ended December 31, 2000, given continued softness in the e-Business marketplace, primarily in North America. Cambridge also announced that it plans to further reduce capacity to meet current market demand. The company expects that revenue for the fourth quarter will be approximately $127-$129 million. As a result of this revised outlook, Cambridge is projecting an operating loss operating loss The excess of operating expenses over revenue. As with operating income, operating losses exclude revenues and expenses from operations that are not considered a regular part of the business. Also called deficit. Compare operating income. in the range of $19-$21 million before restructuring charges in the quarter. A charge of $4-$5 million will be taken in the December quarter to cover severance and other costs associated with the restructuring. Cambridge has reduced its workforce by approximately 280 positions, of which 240 were billable positions and 40 non-billable positions. These actions will result in annual savings of approximately $30 million. Coupled with the cost cutting actions previously implemented in October, the company expects to realize total annual savings of approximately $95 million. "The actions we are taking will better align Cambridge's capacity with demand", said Jack Messman, President and Chief Executive Officer of Cambridge. "Our financial position continues to be strong. At the end of the fourth quarter, the Company continues to have ample liquidity and no debt. We remain focused on and committed to returning the Company to profitability early in 2001." The revenue shortfall came principally from Cambridge's North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Business Unit (NABU Nabu Major god in the Assyrian-Babylonian pantheon, the son of Marduk. He was patron of the art of writing and a god of vegetation. As the recorder of the fates assigned to humans by the gods, Nabu's symbols were the clay tablet and the stylus. His holy city was Borsippa. ) and its Cambridge Management Consulting (CMC (Common Messaging Calls) A programming interface specified by the XAPIA as the standard messaging API for X.400 and other messaging systems. CMC is intended to provide a common API for applications that want to become mail enabled. 1. ) unit. The shortfall in NABU is attributed to the recent economic slowdown, more complex sales cycles for its Global 1000 clients and a reduced sense of urgency by its clients in initiating new projects. The revenue softness in CMC is the result of delays in several large projects. Cambridge will give guidance with respect to the first quarter and full year 2001 at its earnings conference call scheduled for February 8th. Conference Call Cambridge will host a conference call today at 10:00 AM EST EST electroshock therapy. EST abbr. electroshock therapy . Investors can also listen to the call through a live webcast at Cambridge's website (www.ctp.com) or at www.vcall.com. Alternately, you may dial in at 1-973-633-6740 (no pass code required). About Cambridge Technology Partners Cambridge Technology Partners provides strategic and management consulting as well as systems integration services to transform its clients into e-Businesses. Working in collaboration with Global 1000 and high-velocity middle market companies, Cambridge combines a deep understanding of New Economy issues with integrated, end-to-end services, and a proven track record of shared risk and rapid, guaranteed delivery. Cambridge generated $628.1 million in revenue in 1999, with $243.3 million from its global e-Business solutions. Cambridge has approximately 3,600 employees in offices in 19 countries around the world. Cambridge is a Safeguard Scientifics (NYSE NYSE See: New York Stock Exchange : SFE See Sydney Futures Exchange. ) partner company. Cambridge on the Web: (http://www.ctp.com). FORWARD-LOOKING STATEMENTS This Press Release includes forward-looking statements (statements that are not historical facts and relate to future performance), including statements about future strategies and financial expectations that involve risks and uncertainties. Forward-looking statements are neither promises nor guarantees and actual results may differ materially from those stated in any forward-looking statements based on a number of factors. These risks and uncertainties include, but are not limited to, the following: the success of executing the Company's planned transition to e-Business; the Company's reliance on key personnel to guide these efforts and its ability to attract and retain qualified employees; competitive forces in the labor market labor market A place where labor is exchanged for wages; an LM is defined by geography, education and technical expertise, occupation, licensure or certification requirements, and job experience in which the Company participates; the Company's ability to execute on and realize the benefits of its cost reduction and budgeting initiatives; the Company's ability to win business in a competitive marketplace; the failure of anticipated industry growth rates Growth Rates The compounded annualized rate of growth of a company's revenues, earnings, dividends, or other figures. Notes: Remember, historically high growth rates don't always mean a high rate of growth looking into the future. to materialize; CMC's future financial performance; general stock market and economic conditions, and other risks identified in the Company's SEC filings, including information under the heading "Forward-looking Statements" in its Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. for the year ended December 31, 1999 and in the reports on Form 10-Q for the first, second and third quarters of 2000. Cambridge assumes no obligation to update the information contained in this Press Release. |
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