P.M. BRIEFING : Ashton-Tate Corp. to Lay Off 15%
Ashton-Tate Corp., Torrance-based computer software company that had a big loss in the second quarter, said today that it plans to lay off 15% of its 1,700 workers.
It also said that reduced revenues and anticipated severance and other costs may cause an operating loss for the third quarter greater than the $19.8-million loss recorded in the second quarter.
Edward Esber, Ashton-Tate chairman and president, said in a telephone conference call with reporters and analysts that the company will incur a third-quarter loss but hopes to return to profitability by the fourth quarter.
The worker layoffs will occur by the end of next week, Esber said.
The company is a leading independent producer of computer software. Its dBase filing programs, which accounted for 70% of its sales last year, allow storage and retrieval of large amounts of data and have helped the company become a market leader in database software.
Analysts said the work force reductions make sense because they will lower costs. “Most people have been waiting for something like this, and this should be positive,” said Bahar Gidwani of Kidder Peabody and Co.
Start your day right
Sign up for Essential California for news, features and recommendations from the L.A. Times and beyond in your inbox six days a week.
You may occasionally receive promotional content from the Los Angeles Times.
