lowered its revenue and earnings expectations for the third quarter, citing tightening technology spending by its clients and increased competition.
The San Francisco-based company also said it expects to eliminate about 460 positions worldwide and close offices in the Silicon Valley and Austin, Texas.
Scient expects a third-quarter loss of about $13 million, or 16 cents a share, before restructuring charges of $40 million to $45 million, to cover severance, closures and other restructuring costs. The company broke even in the same period last year. According to
First Call/Thomson Financial
, 20 analysts expect the company to earn 8 cents a share for the third quarter.
Scient expects revenue of about $80 million for the quarter, while Wall Street is expecting $108.9 million. The company had revenue of $42.7 million for the year-ago period.
The company, a provider of electronic-business services, is also aiming to generate savings of about $60 million in 2001 and remains "committed" to its goals of being cash-flow positive in 2002 and reaching long-term operating margins of 15% to 20%.
Shares of Scient were halted at $4.50 on the
, but recently reopened for trading and immediately lost ground. The shares were quoted at $3.58 on the