Shares in interactive-TV-integration company Concero Inc. dropped 20 percent
to $2 apiece Friday morning after the company announced a series of
cost-reduction measures that it said will cut operational expenses by $17
million annually.
The company said it would lay off 130 employees, cut salaries for senior
personnel and eliminate excess office space and equipment. It will also incur a
charge of up to $5 million during the first quarter.
Concero's clients include Commerce.TV Corp., Diva Systems Corp., Gemstar-TV
Guide International Inc., Harmonic Inc., ICTV Inc., Intertainer Inc., PowerTV
Inc. and Scientific-Atlanta Inc.
'Continued weakness in the economy at large and the market for e-business
services in general has made significant adjustments to our cost structure
necessary,' Concero CEO Tim Webb said in a prepared satement.
The company has also shifted its strategies to focus on content chains,
customer-driven enterprise portals and interactive television/entertainment
on-demand, Webb said.
Concero shares have plummeted in the past year after hitting a 52-week high
of $53 last April.
