Net loss adjusted for goodwill, deferred compensation amortizations and special charges was $0.46 per share. Adjusted business loss was $10.1 million, a 25% decrease from $13.5 million in the first quarter of 2001.
We saw a modest increase in license sales in North America in the second quarter, with an encouraging increase in sales activity, but our international business experienced the same slowdown in technology spending that North America experienced earlier, said David Litwack, president and CEO of SilverStream Software, Inc. Current economic conditions make it very difficult to forecast but with a gradual improvement in sales activity and the launch of our new, Web Services-based products, we believe that we are well positioned to take advantage of the inevitable growth of the market for comprehensive, standards-based eBusiness solutions.
Craig Dynes, vice president and chief financial officer of SilverStream added: During the quarter we worked hard to reduce the cost of our operations. Our special charge of $9.3 million, which was a large component of our overall $25.4 million loss, was comprised of costs associated with the reduction of our workforce, closing or downsizing many offices, and reducing the value of certain assets. While we were successful in reducing our adjusted business loss by $3.4 million in Q2, we will continue to further streamline our organization and reduce costs in both Q3 and Q4.
Litwack continued: Although the slowdown in capital spending on IT technologies has resulted in caution around new technology investments and a delay in projects, they’ve not been cancelled altogether. Businesses are still spending on projects that result in strategic business transformation, projects that must happen to remain competitive or to meet business imperatives such as regulatory compliance. These are the projects that SilverStream products were designed to address.
SOURCE: COMPANY PRESS RELEASE
