BILLERICA, Mass., Dec. 2 /PRNewswire/ -- Peritus Software Services, Inc.
(Nasdaq: PTUS), a provider of solutions for software maintenance, today
announced additional restructuring plans. The restructuring will include the
reduction of approximately 45 employees from its current workforce. The
restructuring charges related to the employee reduction and related facilities
expenses to be recorded in the quarter ending December 31, 1998 are expected
to be approximately $1.2 million.
In light of the employee reduction, the Company is reviewing its property,
plant and equipment to determine if any changes to depreciation schedules or
carrying values are warranted. As of September 30, 1998, the Company's net
book value of property, plant and equipment was $5.2 million.
The Company also indicated that, including the above charges related to
the employee reduction and related facilities expenses but excluding any
charges for adjustments to the net book value of property, plant and
equipment, it expects to incur a net loss for the fourth quarter of between
$2.0 million and $4.5 million. This expectation is based upon the information
available to date.
Commenting on the restructuring, Dominic Chan, President and CEO said: "We
are making this reduction to reorient our Company for transition to greater
Outsourcing emphasis while satisfying our Year 2000 customers. While making
these cost and expense reductions, we will continue to maintain the resources
needed to meet our client commitments."
About Peritus
Founded in 1991, Peritus Software Services, Inc. is a provider of software
maintenance outsourcing services. The Peritus Software Asset Maintenance
(SAM) offerings enable organizations to transform the maintenance process into
an efficient, cost-effective discipline that boosts productivity and
performance. SAM offerings include customized services for software
providers, information systems organizations, and Year 2000 renovations.
Peritus is headquartered in Billerica, Mass. For more information, see the
Peritus Web site at http://www.peritus.com.
This press release may contain certain forward-looking statements, which
involve risks and uncertainties. The Company's actual results may differ
materially from the results discussed in such statements. Certain factors
that could cause actual results to differ materially from those discussed in
such forward-looking statements include the risks described in the Company's
Annual Report on Form 10-K for the year ended December 31, 1997, the Quarterly
Report on Form 10-Q for the quarter ended June 30, 1998, and other public
filings made by Peritus with the Securities and Exchange Commission, which
factors are incorporated herein by reference.
Peritus is a registered trademark and Software Asset Maintenance is a
service mark of Peritus Software Services, Inc.
SOURCE Peritus Software Services, Inc.
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Related links:
http://www.peritus.com
Company News On-Call:
http://www.prnewswire.com/comp/123089.html or fax,
800-758-5804, ext. 123089
CONTACT:
John Giordano, Chief Financial Officer of
Peritus Software Services, 978-670-0800, or fax, 978-670-2060, or
jgiordano@peritus.com
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