Boston Communications Group Inc.’s woes continued this week as the company said it will slash its workforce by 21 percent. The company also said it received a notice of noncompliance with listing standards from the Nasdaq Stock Market.
BCGI, which develops billing and payment software for wireless carriers, said it will lay off 93 staffers, or 21 percent of its workforce. The move follows a decision by Sprint Nextel Corp.’s Boost Mobile L.L.C. sub-brand to drop BCGI as a vendor, a move analysts say could cost the developer about one-third of its $100 million annual revenues.
“This was a very difficult decision,” acting CEO Paul Tobin said, “but it was an essential one given our current business environment. We believe that a new, streamlined operating structure will allow us to more efficiently meet the needs of our current customers and also explore other promising market opportunities.”
Meantime, BCGI said it received the letter of noncompliance last week from the Nasdaq exchange for failing to file its 2006 annual report. The firm said it expects to file its restated financial statements within two to three months.
The announcements continue an extended streak of bad news for BCGI dating back to a 2005, when a jury sided with Freedom Wireless Inc. in a patent-infringement suit. BCGI eventually settled the case for $55 million. And last year, CEO E.Y. Snowden and CFO Karen Walker resigned after BCGI became ensnared in a sprawling scandal involving the back-dating of stock options.
Shares of BCGI lost 3 cents, or less than 2 percent, to $1.71 following news of the job cuts.
BCGI to shave off 21 percent of workforce
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