While many companies are blaming declining revenues and increasing losses on fallout from the Sept. 11 terrorist attacks, Vignette Corp. may have the strongest stake to that claim.
The software developer launched the latest version of its content management software, Vignette V6, on Sept. 11. In fact, the launch event had actually been originally planned for the Windows on the World restaurant at the top of World Trade Center in New York.
While Vignette employees, including Chairman and CEO Greg Peters, returned safely from New York, the Austin, Texas, company picked up little momentum from the V6 launch for the rest of the quarter.
On Friday, Vignette announced that it expects revenue for the third quarter, which ended Sept. 30, to be $70.5 million, resulting in a "core operating loss" of $15.5 million. In the same quarter last year, Vignette reported $110.4 million in revenue and a core operating loss of $9.1 million.
Taking into account amortization, certain research and development costs, acquisition costs and one-time expenses, the companys net loss for the quarter figures to be much higher.
As a result, Vignette also announced a 20 percent work force reduction today. The reduction is the third and largest round of job cuts the company has announced this year and totals about 350 employees. Vignette has reduced its work force by about 900 employees this year and now employs approximately 1,400 workers.
Peters said in a statement that the terrorist attacks pushed back certain sales and service implementations, though he said the company still gained market share in the quarter.