May, 2001 : Data Return Releases Earnings, Cuts Jobs
📅 - Web hosting company Data Return (Nasdaq: DRTN) announced late Friday that it would be cutting 18 percent, or approximately 100 employees, in order to save the company at least $2.4 million per quarter.
The company, which specializes in providing managed Web hosting solutions specific to the Microsoft platform, anticipates a one-time charge of $1.0 million to $1.5 million in the first fiscal quarter ending June 30, 2001 because of the restructuring. Data Return said it anticipates that it will realize savings from the cuts in the second quarter of fiscal 2002.
"These were difficult decisions,'' said Robert Prosen, Data Return's Chief Operating Officer. "However, given the realities of the current economy and our previous practice of hiring slightly ahead of demand, these were necessary steps."
The announcement comes one day after the company announced a loss of $12.9 million, or 36 cents a share, for their fiscal Q4. In the same quarter a year ago, the company posted a loss of $11.7 million, or 14 cents a share.
Considering the challenging economic environment, we are pleased with our results this quarter,'' said Sunny C. Vanderbeck, Data Return's Chairman and CEO. The company expects to reach the break-even point during their fiscal 2002 year.
The company, which specializes in providing managed Web hosting solutions specific to the Microsoft platform, anticipates a one-time charge of $1.0 million to $1.5 million in the first fiscal quarter ending June 30, 2001 because of the restructuring. Data Return said it anticipates that it will realize savings from the cuts in the second quarter of fiscal 2002.
"These were difficult decisions,'' said Robert Prosen, Data Return's Chief Operating Officer. "However, given the realities of the current economy and our previous practice of hiring slightly ahead of demand, these were necessary steps."
The announcement comes one day after the company announced a loss of $12.9 million, or 36 cents a share, for their fiscal Q4. In the same quarter a year ago, the company posted a loss of $11.7 million, or 14 cents a share.
Considering the challenging economic environment, we are pleased with our results this quarter,'' said Sunny C. Vanderbeck, Data Return's Chairman and CEO. The company expects to reach the break-even point during their fiscal 2002 year.
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