Reynolds & Reynolds to Cut Jobs, Take Charge - TheStreet

Reynolds & Reynolds

(REY)

, the Dayton, Ohio, provider of sales-management systems for the auto industry, will cut about 200 jobs and take a charge of 7 cents a share in the first quarter.

The company also outlined some new software initiatives, including the purchase of a technology company and a Web-based marketing firm, and said it would add a net 400 employees by the end of next year.

Reynolds affirmed fourth-quarter earnings estimates of 44 cents a share and full-year forecasts of $1.66 a share. The company also said it would change its equity compensation system to one that uses restricted stock instead of options. Restated for its options expense, 2003 earnings would be about $1.53 a share.

The acquired companies are Incadea AG, a privately held German company that makes sales software, and Third Coast Media, a Texas marking outfit. Reynolds will consolidate its automotive forms manufacturing facility located in Grand Prairie, Texas, into the company's Celina, Ohio, facility. The action will result in about 200 positions being lost.