The company said that it designed this plan in light of the current economic conditions that are extending sales cycles, as well as the completion of a multi-million dollar software development effort culminating in the release of version 6.5 of I-many’s ContractSphere in the later part of December 2008.
The first quarter of 2009 is expected to be a transition quarter, with expense levels marginally above the planned rate for the subsequent quarters. By the second quarter of 2009, the company expects to be at its expense target run rate for the year. As a result of this plan, I-many expects to generate operating income, excluding non-cash charges like stock option charges, beginning in the first quarter and continuing for the full year of 2009.
John Rade, chairman, president and CEO of I-many, said: The implementation of this plan is essential to ensuring I-many’s ability to weather the current economic downturn that is lengthening our sales cycles and has depressed revenues during the first three quarters of 2008.
We expect our streamlined and more focused sales force to be better able to drive significant high margin license sales to new customers and our existing marquee customer base. However, with a leaner expense structure coming in below our expected recurring revenue and professional services stream, even in the unlikely event we do not see a single new license sale next year, we can expect to exit 2009 with more cash than we started.
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