DESCARTES REPORTS SECOND-QUARTER LOSS, GALLE APPOINTED PRESIDENT
The Descartes Systems Group. Inc. reported a net loss of $19.5 million for the fiscal quarter ending July 31, compared to a net loss of $4.4 million for the year-earlier period.
The results included a special bad debt charge of $3.5 million.
Operating loss reached $20.8 million for the second quarter, improved from an operating loss of $5.2 million for the second quarter of 2000.
Revenue for the period was $19.8 million, up 35.2 percent. License and network revenues were $16.8 million, a 49 percent increase.
Costs and expenses totaled $40.6 million, more than double the $19.8 million reported in the year-earlier period.
For the first six months of its fiscal year, Descartes reported a net loss of $34.8 million, compared to a net loss of $29.4 million for the year-earlier period. Operating losses grew 18 percent to $34.8 million. Revenue was $43.2 million, up 53 percent. Costs and expenses were $78.0 million, up 35.4 percent.
Descartes will take a previously announced restructuring charge of $3 million to $4 million, in its fiscal third quarter, The charge relates to a reduction in the company's work force and the consolidation of some operations.
The company has named Willem Galle president, in addition to serving as chief operating officer. He will be responsible for the consolidation of the company's network services, sales and marketing and solutions development operations.
Galle joined Descartes in 1998 when the company acquired Calixon N.V., of which Galle was chief executive officer, was previously COO.
Waterloo, Ontario-based Descartes provides network-based collaborative logistics management technology.