Big Franklin Loss In Fiscal '99
-- Publishers Weekly, 6/7/1999
Franklin Electronic Publishers said late last month that it expects to report "substantial losses" for the fiscal year and fourth quarter ended March 31, 1999. The company attributed the loss to several one-time charges, including severance payments connected to its management restructuring, as well as lower than expected sales in the fourth quarter. In fiscal 1998, Franklin had sales of more than $100 million and net income of $1.4 million.Earlier this spring, H. Andrew Cross resigned as president and CEO of Franklin, and Barry Lipsky was named acting president (News, Apr. 26). In early May, the company's chief financial officer, John Day, resigned; Arnold Levitt was named interim chief financial officer and treasurer. According to the company, Franklin's new management team is in the process of making substantial reductions in operating expenses.
Franklin senior v-p Greg Winksy told PW the publisher is looking at all areas of the company, but that a decision on how expenses will be cut has not yet been reached. He had no comment on whether the cost reductions would involve layoffs.
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