Internet infrastructure firm 724 Solutions said on Thursday revenues in its fourth quarter fell as much as 25 percent below earlier estimates and further restructuring will include more cuts to its work force.
724 said revenues in the quarter were about $5.6 million to $6 million, down from earlier stated targets of $7 million to $8 million. For the full year, revenues were seen doubling from 2001 levels, rising to $43.6 million to $44 million.
Losses in the fourth-quarter will range between 23 cents and 25 cents per share, for a full-year loss of between $1.16 and $1.18 per share.
724 Solutions also said it would reduce annualized operating expenses by a further 20 percent from previously announced levels, which will involve the shedding of employees and facitlities.
Shares of 724 closed at C$3.95 on Thursday, down from a year high of C$43.75 as investors worry about the firm's long term financial viability.
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