HACKENSACK, N.J.-Wireless enterprise company GoAmerica Inc. announced it will further reduce its work force, news that comes as the company reported shrinking revenues due to its recent deal with EarthLink.
“In light of the continued weakness in enterprise technology spending, we have implemented additional cost saving measures, including the consolidation of our facilities and additional staff reductions,” said Frank Elenio, GoAmerica’s chief financial officer. “Through these efforts and the anticipated growth of our margins, we expect to report continued improvement to our bottom line during 2003.”
A GoAmerica spokesperson was not immediately available to provide details on the job cuts.
GoAmerica’s fourth-quarter revenues clocked in at $6.8 million, down from the $9.1 million the company reported in the previous quarter. The company said the decline in revenue was primarily due to the previously announced sale of parts of its customer base to EarthLink. GoAmerica’s net loss for the quarter was $8.2 million, down from a net loss of $24.3 million in the previous quarter.
“Over the last several months, we have taken steps to enhance GoAmerica’s long-term success,” said Aaron Dobrinsky, the company’s executive chairman. “While we have already begun to see some benefits from these efforts, we are also evaluating various strategic opportunities that have the potential to further strengthen our financial condition. We believe that our strong enterprise relationships with companies such as Dell, EarthLink and IBM, coupled with our proprietary technology and value-added services, position GoAmerica as a leader of the wireless data industry and provide a solid platform for driving stockholder value.”
The company’s stock was down about 4 percent after the news to about 24 cents per share.
