International Microcomputer Software Inc has posted its third consecutive quarter in the red amid slumping retail sales and says it will cut staff in a restructuring. The Novato, California-based provider of productivity, education and graphics software, has reported a third-quarter net loss of $9.7m on revenue down 56.3% at $7.3m, compared to net income of $1.1m, or $0.18 per share. The loss for the quarter amounted to $1.52 per share, when analysts surveyed by First Call were expecting a loss of $0.74.
The company explains that, while the operational loss was more or less in line with expectations, the after-tax loss increased from previous guidance as a result of providing a valuation allowance against deferred tax assets previously recognized. Nine-month net loss was $15.1m on revenue down 32.2% at $30.9m, compared to a loss of $749,000 last year.
IMSI says it has been suffering through a tough retail environment and has plans in place to get the costs associated with its retail operations in line with revenues, discontinue investment in non-strategic products and attempt to capitalize more on internet opportunities. To that end, the company says it will be taking a restructuring charge in the current quarter to cover write-downs of inventories and other assets related to non- strategic products, as well as costs for personnel reductions and facilities closures.
