Peerless Systems ( PRLS) cut 20 jobs as it deals with falling revenue.The El Segundo, Calif., digital imaging company said it anticipates revenue in fiscal 2008 will be slightly below revenue in fiscal 2007, though net income should be comparable. A series of block licenses expected during the second half of fiscal 2008 should make the third and fourth quarters markedly stronger than the first and second quarters. "Dynamics within the digital imaging industry have made it increasingly difficult to predict the product-development plans and needs of our OEM partners," Peerless said. "Nonetheless, management will continue to aggressively pursue opportunities that mutually benefit Peerless and our OEM customers. We intend to organize our engineering infrastructure specifically to address intellectual property and embedded contracts." The company said it believes longer-term OEM demand for Peerless existing core technologies may be softer than previously expected and could lead to declining core revenue trends in future years. In an effort to mitigate the challenges associated with Peerless' core business, and position the company for top-line growth, management is actively exploring a range of new revenue generation opportunities within ancillary sectors of the imaging industry. Prospects under consideration include expanding the applications for existing Peerless technologies, investing in new revenue streams, and potential joint ventures. Management intends to discuss its strategies in conjunction with the release of its 2007 full-year financial results.