Intentia, based in Stockholm, Sweden, is one of the world's leading suppliers of collaborative solutions. Intentia has approximately 2,700 employees serving more than 3,400 customers in the manufacturing, maintenance, and distribution industries via a global network spanning some forty countries. After a strong performance through the 1990s, Intentia suffered a sudden drop in total revenues upon entering the new century. This was due in part to the soft market after the over-hyped Y2K phenomenon and followed up by the global economic downturn. Intentia's AS/400 platform-centric approach of its Movex software, which has since been redesigned as a Java-based product, made it less attractive to a wider range of hardware solutions.
Intentia's second quarter 2004 results show a 26 percent increase in license revenue and an 8 percent reduction in costs and expenses compared to the same period of 2003, resulting in an operating profit of $14 MM Swedish krona (SEK) ($1.8 MM USD).
Recent reports, however, have indicated that Intentia is still attempting to stem the tide, increase revenues, and return to profitability, while also developing the internal infrastructure to increase and measure efficiency (e.g., deployment of consultants' utilization system and sales lead tracking system) and reduce costs. Measures approved by Intentia's board include personnel reductions and facilities consolidation, which are expected to lower costs and expenses by an estimated $290 MM (SEK) ($37.8 MM USD), or 10 percent, on an annualized basis. The company will record a restructuring charge of approximately $250 MM (SEK) ($32.6 MM USD) in the third quarter, which is equal to the expected cash flow impact over the period Q3 2004 to Q1 2005.
Intentia's second quarter 2004 results show a 26 percent increase in license revenue and an 8 percent reduction in costs and expenses compared to the same period of 2003, resulting in an operating profit of $14 MM Swedish krona (SEK) ($1.8 MM USD).
Recent reports, however, have indicated that Intentia is still attempting to stem the tide, increase revenues, and return to profitability, while also developing the internal infrastructure to increase and measure efficiency (e.g., deployment of consultants' utilization system and sales lead tracking system) and reduce costs. Measures approved by Intentia's board include personnel reductions and facilities consolidation, which are expected to lower costs and expenses by an estimated $290 MM (SEK) ($37.8 MM USD), or 10 percent, on an annualized basis. The company will record a restructuring charge of approximately $250 MM (SEK) ($32.6 MM USD) in the third quarter, which is equal to the expected cash flow impact over the period Q3 2004 to Q1 2005.
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