Xpedior, Inc. (Nasdaq: XPDR) fell 7/32to 1/2 Tuesday after the Internet consulting company said it will close someunprofitable offices, cutting about 380 jobs.
The Chicago, Illinois-based consultant said it will focus on such key markets asretail and distribution, telecommunications, and financial services, a movedesigned to emphasize its strengths in business integration and technologyconsulting services.
The job cuts will affect consultants, as well as administrative and supportstaff, the company said. Charges for the layoffs and for other costs,including goodwill related to prior acquisitions, will be recorded in thefourth quarter.
Chief financial officer Thomas Werner said the company is not providing guidance “at this time” regarding its financial outlook for the fourth quarter orthe year.
“Our goal is to be cash flow and EBITDA positive,” Werner said. In order to dothat, he noted, the company must maintain a 70 percent utilization rate,improve gross margins, and slash selling, general and administrativeexpenses.
“After closely assessing our market, we are refocusing on our traditionalstrengths in developing e-business and technology integration solutions,” said chief operatingofficer J. Vincent Verna.
“The focus will be on integrating e-business technologies with traditionalplatforms,” Verna added. “Our exceptional skill sets in these areas, combinedwith our growing expertise in wireless, voice and mobile applications, giveus distinct competitive advantages in this new market environment.”
Continued Verna,”The past four months have seen the entire market sector scale backsignificantly. However, we believe the demand for e-businesssolutions applications will strengthen.”