The fall in revenue was largely due to headcount reductions in its IT services unit, in line with the company’s strategy to move away from IT services and staffing, and toward focusing on providing services and solutions around its Chimes workforce management software product.
IT services and staffing still represents the largest proportion of the company’s revenue, bringing in $36.2m, or 60% of first-quarter revenue, down from $54.7m, or 69% in the first quarter of 2002. Revenue from the company’s outsourcing and solutions group fell 5% to $19.6m, while revenue from Chimes grew almost 15% to $4.5m for the first quarter.
Last month, Computer Horizons signed a letter of intent to sell its European customer base of human capital management software provider Chimes Inc to UK-based services firm Parity Group Plc, which had a combined value of 15m pounds ($24.2m) in 2002, where the company will act as its European reseller and services provider of the product.
The company said it expects revenue for the second quarter of 2003 to be in the range of $60m to $62m, and that it will narrow its operating loss in the second quarter to between $0.02 to $0.04 per share. It also anticipates sequential growth in the second half of the year, and claims to be on track for full-year profitability from operations in the range of $0.03 to $0.05 per share.
Source: Computerwire
