PowerCerv loses CEO, earnings

By SCOTT BARANCIK

© St. Petersburg Times, published July 8, 2000

TAMPA -- In a terse but loaded news release Friday evening, software developer PowerCerv Corp. said its second-quarter earnings will fall well below projections and that its chief executive officer had resigned.

The Tampa company said it expects a second-quarter operating loss of $2.3-million, or 17 cents per share, on revenues of $3.3-million. First Albany Corp. analyst Robert D. Kugel had predicted a loss of one cent per share. PowerCerv will issue its quarterly tally July 28.

"The results for the second quarter, while a significant improvement over our first quarter, are still disappointing and required us to take significant action," said founder and chairman Marc J. Fratello, who will replace Michael J. Simmons as president and CEO. Simmons was appointed president in 1998 and CEO in January.

PowerCerv also said it cut 37 staff positions, or nearly 20 percent of its 200-person payroll. As recently as 1998, the firm employed approximately 400.

Founded in 1992, PowerCerv designs and sells integrated business software that runs numerous parts of a business, from manufacturing to front-office tasks such as accounting.

The company's stock closed down 6 cents at $1.31 Friday before the announcements. Calls to the company Friday evening were not returned.

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