Open Market Restructures - 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.


Open Market Restructures

Open Market Inc., an early entrant into the electronic-commerce market, is now struggling to reclaim its edge. The company said yesterday that it will undergo a restructuring that will include laying off 20% of its workforce. The vendor currently employs 480 people.

The announcement follows the disappointing third-quarter earnings report released on Thursday under which the Burlington, Mass., company posted a loss of 19 cents per share and a 7% decline in revenue. Open Market pointed at falling CD-ROM-based software sales, losses in the Asia-Pacific rim, and shortcomings in its sales organization as reasons for disappointing results. "There are a lot of things we can place the blame on," a company spokesman said, "but Japan and Asia are certainly on the top of that list."

Allen Bonde, an analyst with the Extraprise Group who has followed Open Market for several years, says the cutbacks were no surprise. "The writing's been on the wall for a few quarters. They're in the fastest-growing market, but they're out of sync with what people want from E-commerce. They're coming out with the actual infrastucture packages and what the customers want are more services." Still, Bonde sees hope for Open Market. "If they have a shake-up in management or a partner bring in an outside perspective, they could figure out a way to be profitable."

For its third quarter, Open Market's revenue fell to $14.4 million, down from $15.5 million last year. Net losses increased year over year for the quarter: $6.6 million this year vs. $6.4 million last year. The company is expecting a restructuring charge of $2 million to $4 million dollars in the fourth quarter.

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
2021 State of ITOps and SecOps Report
2021 State of ITOps and SecOps Report
This new report from InformationWeek explores what we've learned over the past year, critical trends around ITOps and SecOps, and where leaders are focusing their time and efforts to support a growing digital economy. Download it today!
InformationWeek Is Getting an Upgrade!

Find out more about our plans to improve the look, functionality, and performance of the InformationWeek site in the coming months.

Remote Work Tops SF, NYC for Most High-Paying Job Openings
Jessica Davis, Senior Editor, Enterprise Apps,  7/20/2021
Blockchain Gets Real Across Industries
Lisa Morgan, Freelance Writer,  7/22/2021
Seeking a Competitive Edge vs. Chasing Savings in the Cloud
Joao-Pierre S. Ruth, Senior Writer,  7/19/2021
Register for InformationWeek Newsletters
Current Issue
Monitoring Critical Cloud Workloads Report
In this report, our experts will discuss how to advance your ability to monitor critical workloads as they move about the various cloud platforms in your company.
White Papers
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