Answerthink Is Next With Warnings, Layoffs - InformationWeek

InformationWeek is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

IoT
IoT
News

Answerthink Is Next With Warnings, Layoffs

The decline in demand for E-implementation services is affecting E-strategy companies as well. Answerthink Inc. on Wednesday tucked pink slips in the stockings of about 150 interactive-marketing and Web-development consultants--about 8% of its workforce.

Answerthink also expects profit for the fourth quarter of 2000 to fall short of expectations, largely because of the company?s reliance on dot-com clients tabling projects while they scratch for new funding. Fourth-quarter revenue is expected to be $68 million to $70 million, down from the $86 million originally projected. The firm expects to post a loss of $7.5 million to $8.5 million.

Answerthink?s quandary is not unique to the E-services market, where service providers Scient, Razorfish, iXL Enterprises, Lante, MarchFirst, Viant, and others have watched income dry up and turned on their staffs to lessen the bleeding. For 2001, Answerthink says it's looking forward to sequential quarter revenue increases of 3% to 7%. That would amount to fiscal-year revenue of $320 million to $325 million. Profit, according to the company, would be about $24 million, or 49 to 53 cents per diluted share.

"No one appears to be insulated from the market?s downturn," says Barry Chubrik, a VP with Credit Suisse First Boston. "Companies want to decrease items on their balance sheets, so the money they?re spending is shifting to outsourcing [rather than E-business consulting or implementation], which favors old-line service providers like IBM Global Services, EDS, and CSC."

We welcome your comments on this topic on our social media channels, or [contact us directly] with questions about the site.
Comment  | 
Print  | 
More Insights
The State of IT & Cybersecurity Operations 2020
The State of IT & Cybersecurity Operations 2020
Download this report from InformationWeek, in partnership with Dark Reading, to learn more about how today's IT operations teams work with cybersecurity operations, what technologies they are using, and how they communicate and share responsibility--or create risk by failing to do so. Get it now!
Commentary
The Best Way to Get Started with Data Analytics
John Edwards, Technology Journalist & Author,  7/8/2020
Slideshows
10 Cyberattacks on the Rise During the Pandemic
Cynthia Harvey, Freelance Journalist, InformationWeek,  6/24/2020
News
IT Trade Shows Go Virtual: Your 2020 List of Events
Jessica Davis, Senior Editor, Enterprise Apps,  5/29/2020
Register for InformationWeek Newsletters
Video
Current Issue
Key to Cloud Success: The Right Management
This IT Trend highlights some of the steps IT teams can take to keep their cloud environments running in a safe, efficient manner.
White Papers
Slideshows
Twitter Feed
Sponsored Live Streaming Video
Everything You've Been Told About Mobility Is Wrong
Attend this video symposium with Sean Wisdom, Global Director of Mobility Solutions, and learn about how you can harness powerful new products to mobilize your business potential.
Sponsored Video
Flash Poll