Jones Lang LaSalle


Computer Horizons loss widens
by Catherine Tymkiw
March 13, 2006

The troubled information-technology services firm said its quarterly loss widened but forecast a modest profit on a restructuring plan.

Computer Horizons Cop., a troubled information-technology services firm, said its quarterly losses widened but forecast a modest profit.

Mountain Lakes, N.J.-based Computer Horizons lost $39.5 million, or $1.24 a share, in the fourth quarter, compared to a loss of $24.3 million, or 78 cents a share, a year earlier. Revenue slipped 2.7% to $65.8 million.

The company’s shares fell as much as 5.8% during morning trading and were off 2.6% intraday.

Despite the loss, Computer Horizons said its just-completed restructuring plan would return it to profitability in the three months through March 31. The plan resulted in a $1.5 million charge in the latest quarter but should cut annual costs by $4.2 million.

For the full year of 2006 the company forecast a profit in the range of 20 cents to 25 cents a share on revenue of $280 million to $290 million.

Computer Horizons, which last year weathered a management shakeup and a failed merger attempt, said it will continue working with investment bank Jeffries Broadview to evaluate strategic options. Alternatives include a sale of the company, a spin-off or initial public offering of some assets.