Informix to Realign Management, Organizational Structure

Informix(IFMX Quote), a supplier of data management software to government and businesses, has announced plans to realign its management and organizational structure and institute a stock-repurchase program with the hopes of strengthening its operating and financial performance.

The changes are also intended to strengthen the company's stock price and build value for the company's shareholders. Informix said it expects to take a third-quarter charge of between $75 million and $90 million associated with the restructuring, and will initiate a stock repurchase program of 6.4 million shares, effective Aug. 14.

The Menlo Park, Calif.-based company's stock climbed up to 5 1/4 in after-hours trading, after closing the regular session up 1/16, or 1%, at 4 11/16.

Effective immediately, the company's five business divisions will be combined into two groups. Senior vice president Jim Foy will oversee the database business operations, while Pete Fiore, also a senior vice president, will direct the solutions business operations.

"We need an organizational structure that will focus on high-growth opportunities in e-business and business intelligence solutions while leveraging out technology leadership in data management," said President and Chief Executive Officer Peter Gyenes.

Annualized cost savings from the realignment will be between $70 million and $80 million, according to the company.

Informix also said that additional charges of between $10 million and $15 million, relating to the corporate changes, will be taken during a transition period, which will last through the first half of 2001.