Cost Savings Initiatives
In the third quarter of 2012, the Company initiated a plan to reorganize its operations resulting in certain organizational changes in its Canadian and EMEA locations. The plan consists of workforce reorganization and elimination of redundant or unneeded positions allowing the Company to combine business operations in certain geographic locations with the purpose of serving its clients more efficiently. In connection with this reorganization, CTPartners anticipates incurring severance and other employee-related costs in the range of $1.0 million to $1.2 million, or approximately $0.07, of which $700,000 is expected to be cash expenditures. The total charge will be recorded in the third quarter of 2012. The Company expects that these cost savings will result in annualized savings of $1.5 million.
For the third quarter 2012, the Company expects revenue to be in the range of $30 million to $32 million. Excluding the non-recurring charges related to the reorganization, earnings per share for the quarter are expected to be in the range of a net loss per share of $0.04 to earnings per share of $0.05 with an operating margin of -1.3% to 2.3%.The Company reaffirmed its guidance for the full year 2012 of $128 million to $132 million in revenue, an operating margin of 2.0%-3.5% and diluted EPS of $0.15 to $0.30, excluding any non-recurring charges. Conference Call and Webcast The Company will host a conference call and webcast for the investment community on Friday, August 10, at 9 AM ET. A replay of the event will be available for one week following the conclusion of the call. Second Quarter 2012 Financial Results Conference Call and WebcastDate: August 10, 2012Time: 9 AM ET Audio Webcast: http://investor.ctnet.comLive Dial-In (U.S.): 800-329-9097Live Dial-In (International): 617-614-4929Participant Passcode: 45545147 Replay Dial-In (U.S.): 888-286-8010Replay Dial-In (International): 617-801-6888Replay Access Code: 32558477