Bitstream Spinoff To Cut 28 Jobs
Marlborough Software Development Holdings (MSDH), the spinoff created by Bitstream Inc. to hold its web-to-print and mobile web browser business, has eliminated about a quarter of its workforce as the company deals with a weak global economy and mounting losses.
The Marlborough-based company, which makes software under the Pageflex brand, said it will eliminate 28 positions, including seven contractors. It said it will also cut work hours and take other cost-saving measures. The firm expects to save about $2.6 million a year with the cuts.
James Dore, the company's executive vice president and CEO, said the moves "are the most difficult decisions an organization has to make but (were) necessary to better position the company" to grow.
The announcement comes two weeks after the company reported a $2.5-million loss for its most recent quarter, which ended June 30. That was slightly worse than the third quarter of 2011, when it reported a loss of $2.39 million. On the revenue side, the company brought in $1.965 million, down from $2.08 million in the same quarter last year. For the first six months of 2012, MSDH reported $3.73 million in revenue, behind last year's pace of $4.34 million.
The company said recent upgrades to Pageflex will help MSDH grow.
MSDH stock began trading five months ago on the OTC bulletin board.
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