enigma on Monday announced 30 job cuts, or 20% of its staff. The company also said that it has turned cash flow positive.
Due to developments in the technology and software markets and the continuing global downturn, especially in the United States, the company has decided to narrow its focus to the manufacturing sector, and to adjust spending to the adverse economic conditions. It also lowered its growth forecast for 2001 from 50% to 30%.
Enigma provides B2B solutions for the spare parts market. Although it is cutting back staff in general, it plans to recruit senior sales executives for its United States branch. It hopes to recruit managers from leading B2B companies such as Ariba (Nasdaq:ARBA) and i2 Technologies (Nasdaq:ITWO). "We have decided to adjust our business to current market conditions in order to avoid having to take radical steps should a crisis occur," commented general manager and CTO Ronnen Armon.
The company posted $8 million revenue for the first quarter of 2001, four times more than in the parallel quarter of 2000. Enigma raised $13 million in December at a post-money company value of $170 million.
Israeli venture capital fund Danbar Technologies is reportedly plans to liquidate its remaining 1% stake in Enigma for about $1 million during the third quarter.