Manugistics Group Inc., a Rockville-based producer of software, said yesterday that it will cut its work force by 12 percent after posting a wider-than-expected loss in its fiscal first quarter.
About 184 of the company's 1,530 workers - of whom 1,200 are in the United States - will be cut from the payroll as part of a move that aligns the company with "current financial and market realities," said Gregory J. Owens, Manugistics' chairman and chief executive.
Owens said he was disappointed with the quarter's numbers and blamed the current technology recession. The company makes software that helps businesses manage their production and deal with their suppliers and vendors.
"Unfortunately, at this time, companies are deferring large capital expenditures," he said. "I am confident, however, that the demand for Manugistics' solutions will return as the economy improves."
During the fiscal first quarter that ended May 31, Manugistics' net loss widened by 14 percent to $27.1 million, or 39 cents per share, from the year-earlier period's loss of $23.4 million, or 35 cents per share.
Total revenue fell 19 percent to $74.6 million in the quarter, from $92.4 million in the corresponding period last year. Software revenue declined 46 percent to $24.5 million from $45.1 million in the year-earlier period.
To reduce costs, Manugistics' U.S. employees will take a mandatory unpaid vacation next week; the company will also implement a voluntary week of unpaid vacation for its European employees in this quarter. The company warned June 4 that its fiscal first-quarter results would be poorer than expected.
The company will also close and consolidate smaller field offices - two in the United States and two or three in Europe, a spokeswoman said.
Through these measures, Manugistics said, it expects to save $40 million annually. But the company said it will record a charge to earnings of roughly $10 million in its fiscal second quarter relating to employee severance, lease and contract termination costs, and impairment losses on property and equipment.
Owens said he expected total revenue to be slightly lower in the second quarter. Shares of Manugistics, which rose 69 cents yesterday to close at $5.74, have fallen 77 percent during the past year.