3D visualization software company MetaCreations said Tuesday that it will cut 100 jobs – or roughly half of the current workforce – as it divests its graphics business. The Carpinteria, California- based company also said it will report a huge loss in the current quarter and announced that its chief executive has resigned.
Going forward, MetaCreations will focus solely on e-commerce visualization software built on its MetaStream technology, which enables the streaming and display of interactive 3D virtual product presentation over the web. MetaCreations has hired Silicon Valley-based firm Alliant Partners to help it with the sale of the graphics unit, which the company feels no longer represents the kind of growth prospects it is looking for.
The move will be a costly one in the short term, though, as MetaCreations said it will lead to a loss of $38m to $42m in the fourth quarter on revenues that will fall well below Wall Street forecasts. Analysts surveyed by First Call were expecting a profit of $0.02 per share, or about $500,000, for the quarter.
Separately, MetaCreations said president and chief executive Gary Lauer is resigning to join another company but will keep his post as chairman of the board of directors. In a somewhat curious move, Lauer will be replaced by Mark Zimmer, currently the president of MetaCreations’ outgoing business graphics division. Zimmer was a co-founder and CEO of Fractal Design, which was later acquired by MetaCreations.
