Peritus Software Services Inc, the financially-troubled provider of software maintenance outsourcing services, announced it will move its headquarters in a further effort to cut costs. The company said on Tuesday that it is relocating from Billerica, Massachusetts to an existing facility in Westborough, Massachusetts effective September 27. To accomplish the move, however, Peritus had to reach a costly settlement agreement with the owner of its office space in Billerica.
Under the settlement, the company agreed to pay $200,000 in cash, relinquish its $300,000 security deposit, issue 500,000 shares of common stock – currently worth $87,500 – and transfer miscellaneous furnishings and equipment. In exchange, Peritus was let out of a lease that would have required payments of about $145,000 per month through February, 2006. The company hadn’t made any lease payments since July.
In addition, Peritus says it executed a lease termination agreement last month for its Lisle, Illinois facility. Under that agreement, the company agreed to pay $100,000 in cash and relinquish its $16,000 security deposit. That move saved it about $18,000 per month through February, 2003. The company hadn’t made any payments on that lease since March.
So far this year, Peritus has cut staff, seen its former CEO resign and warned that it was close to bankruptcy. For now, the company says that the lease settlements effectively complete its work in the area of expense reduction. As far as the uncertain future goes, new president and CEO John Giordano said only: If we can generate enough revenue in the future, we expect to achieve the turnaround of the company.
