DESCARTES NARROWS THIRD-QUARTER LOSSES
The Descartes Systems Group Inc., the logistics management technology service provider, on Thursday reported a net loss of $5.1 million for its third quarter ended Oct. 31.
The third-quarter loss compared to a loss of $15.6 million for the year-earlier quarter. The company reported adjusted earnings of $472,000, compared with an adjusted loss of $2.8 million for the third quarter of 2001.
Revenues were $17.5 million. Network-based revenue increased 18 percent to $10.7 million, while software license revenues fell 36 percent to $3.8 million, reflecting the company's shift in its pricing model and the general softness in the software license market. Service revenue declined 9 percent to $3 million as a result of the company's shift to less service-intensive network-based logistics revenues.
Descartes said the improved results reflect the results of initiatives the company undertook over the first nine months of its fiscal year. These initiatives included aligning cost structure with its subscription- and transaction-based revenue model, and appointment of general managers in the Americas, Europe, the Middle East, Africa and Asia Pacific, with full operational responsibilities for regional performance.
'Our cost structure is now aligned with the company's network revenue model, all sales-related activities have been regionalized for greater customer service and satisfaction and we continue to innovate new products to drive customer activity,' said Manuel Pietra, Descartes' co-chief executive officer and president.
During the third quarter, Descartes acquired the remaining interest in Tradevision AB, making the company a wholly owned subsidiary of Descartes. The unit was integrated within four weeks, resulting in 'significant anticipated cost savings through the consolidation of operations,' the company said.