FileNet Shares Rise on Report of Narrower Loss

Software maker FileNet Corp. on Wednesday posted a narrower than expected third-quarter loss, triggering a 33% surge in its shares.

The Costa Mesa company also said it expects to return to profitability by next year, but announced that it will cut another 100 jobs, or up to 7% of its work force.

The stock climbed $3.32 to $13.37 on Nasdaq.

“We controlled expenses more effectively than we thought we did,” Chairman and Chief Executive Lee Roberts said. In the first quarter, the company cut 140 to 150 jobs and reduced other costs.

FileNet reported a net loss of $2.2 million, or 6 cents a share, compared with net income of $10.2 million, or 28 cents a share, a year earlier. Analysts had expected a loss of 16 cents to 23 cents a share, according to a survey by Thomson Financial/First Call.

Revenues fell more than 19% to $80.1 million.

Roberts said he expected the company’s results to range between breaking even and a loss of 5 cents a share. If the company does not return to the black in the last quarter, it should be profitable again by the first quarter next year, he said.