Process management software maker
(Nasdaq:TCNO) fired another 70 workers earlier this week, or an estimated 10% of its workforce, TheMarker.com has learned.
Tecnomatix's management has confirmed this, but pointed out the majority of the dismissals involve overseas staff.
In April of this year the company fired 50 workers. Before dismissals, the company employed a staff of 700. As part of the firm's efforts to reduce operating expenses it has terminated its deal with a local public relations office. The company said the move was a logical one as most of its activities are overseas. Tecnomatix had worked with the public relations firm for the past year and a half.
The e-manufacturing company develops solutions that enable planning, developing and optimal operation of production processes in any large enterprise.
The firm's first quarter 2001 operating loss came to $5.3 million, and its sales reached $22.2 million. Tecnomatix's market cap is $91 million, compared with its past record-high market cap of $470 million.
The company has been drawing attention of late following intensified activity by its shareholders.
At the beginning of this month
(NYSE:SDS) sold its 17% stake in Tecnomatix at $9.25 per share.
Some 10.5% of stock was acquired for $10 million by Tecnomatix Chairman Shlomo Dovrat, President, CEO and Director Harel Beit-On, as well as by other board members and parties related to the company.
SunGard became a shareholder in Tecnomatix after acquiring Oshap Technologies in 1999.
Oshap was founded by Dovrat, who received $210 million in stock in return for Oshap.
A week ago a group led by the Ofer Bros announced that it acquired 5.5% of Tecnomatix stock for $5 million at $9.25 per share, which was 9% above the share's closing price that day.