Revenues for the fourth quarter of 2000 were $125.1 million, or 13.7% lower than $145.0 million for the same period of 1999. During the quarter, Cambridge also reported that it reduced its workforce by approximately 280 positions and took a one-time restructuring charge of $5 million to cover severance and other costs associated with the restructuring.
Net loss for the fourth quarter of 2000 was $19.4 million, or $ .31 per share (basic and diluted) versus a net loss of $17.3 million or $.28 (basic and diluted) for the same period of 1999. Loss from operations for the fourth quarter of 2000 was $27.9 million including the one-time restructuring charge of $5 million.
This restructuring effort, combined with the company’s third quarter cost reduction effort of $65 million, should result in annual cost savings of $95 million. Revenues for the twelve months of 2000 were $586.6 million, down 6.6% from $628.1 million for the twelve months of 1999. Net loss for the twelve months was $62.5 million, or $1.00 per share (basic and diluted) compared with net income of $2.1 million, or $.03 (diluted) for 1999. Key metrics for the quarter included a utilization rate of 58%, the same rate as Q3 2000.
Voluntary turnover rate for the quarter continued to decline to 23%, down from 26% in Q3 2000. Worldwide DSO (days sales outstanding) dropped to 70 days, down from 74 days in Q3 2000. During the quarter, Cambridge introduced its new focused Go to Market strategy and reorganized its sales force around this approach.
The business solutions now offered to Cambridge’s clients come from its key service lines of Digital Strategy, eCommerce, mCommerce, eSCM, eCRM, eERM, UX Design and Technology (includes custom applications development, systems integration, data warehousing and portals). These business solutions will be focused on the Company’s primary vertical markets of Financial Services, Communications, Energy and Products.
The company’s sales force was also strengthened. The new organization is now designed to clearly delineate responsibilities between sales and delivery personnel with emphasis on the Company’s primary vertical markets. We made a lot of difficult choices last year and are confident that our actions will begin to pay off, Messman added. However, if the organizational changes that we have implemented don’t produce sufficient results, then we will take new actions based upon market conditions. We plan to do whatever is necessary to get the bottom line in to positive territory.
