SAN FRANCISCO-Critical Path Inc., which provides a range of wireless messaging products, said it expects to come in above its revenue estimates for its fourth quarter, but at the expense of a cost-savings plan that includes a 30-percent reduction in its work force.
Critical Path said it expects to clock in fourth-quarter revenues of between $21 and $22 million. The company said it will also cut 175 positions, a move that will save the company about $22 million annually.
“We are committed to achieving EBITDA breakeven by the end of the second quarter of 2003 and EBITDA profitability in the second half of 2003, and for that reason we are taking the company to a lower cost structure that we believe will support our growth targets,” said William McGlashan, the company’s chairman and chief executive officer.
