Work performance management solutions company
(Nasdaq:MERQ) on Tuesday told its employees that for now, there will be no staff dismissals. The announcement was made by the company President, CEO and Chairman Amnon Landan. But Landan also said that he has not ruled out future staff cuts, TheMarker.com has learned.
The company's VP of Operations Ariela Avni, said that Mercury Interactive it is soon to launch a worker-recruitment campaign.
Mercury Interactive's stock traded on Wednesday at $52.6 per share, which is 68% less than its $162 peak. The share has lost 42% of its value since the beginning of the year. Investment houses covering the company have not given an explanation for the share's decline, apart from citing the general slump in the sector and the marketplace.
In a report published one month ago by investment house
the bank downgraded Mercury from a Strong Buy rating to a Buy. Deutsche Banc said that although the company is not a high risk and its figures for its first quarter of 2001 seems stable and in line with forecasts, it is not clear if Mercury will be affected by the slump in its market sector, the investment bank wrote.
also cut its forecast for Mercury, as well as for the entire sector a month and a half ago. But Goldman Sachs was relatively upbeat and said that Mercury is posting good financial results, a trend which is expected to continue in the coming period. Its revised forecast for the firm was moderate compared with other companies in the same sector.