Xpedior Falls on Job Cuts, Retrenchment

Xpedior, Inc. (Nasdaq: XPDR) fell 7/32 to 1/2 Tuesday after the Internet consulting company said it will close some unprofitable offices, cutting about 380 jobs.

The Chicago, Illinois-based consultant said it will focus on such key markets as retail and distribution, telecommunications, and financial services, a move designed to emphasize its strengths in business integration and technology consulting services.

The job cuts will affect consultants, as well as administrative and support staff, the company said. Charges for the layoffs and for other costs, including goodwill related to prior acquisitions, will be recorded in the fourth quarter.

Chief financial officer Thomas Werner said the company is not providing guidance "at this time" regarding its financial outlook for the fourth quarter or the year.

"Our goal is to be cash flow and EBITDA positive," Werner said. In order to do that, he noted, the company must maintain a 70 percent utilization rate, improve gross margins, and slash selling, general and administrative expenses.

"After closely assessing our market, we are refocusing on our traditional strengths in developing e-business and technology integration solutions," said chief operating officer J. Vincent Verna.

"The focus will be on integrating e-business technologies with traditional platforms," Verna added. "Our exceptional skill sets in these areas, combined with our growing expertise in wireless, voice and mobile applications, give us distinct competitive advantages in this new market environment."

Continued Verna, "The past four months have seen the entire market sector scale back significantly. However, we believe the demand for e-business solutions applications will strengthen."