Digimarc Corporation (DMRC) saw its stock plummet by over 20% in pre-market trading on Thursday, following the release of its disappointing fourth-quarter earnings results and the announcement of a significant workforce reduction as part of a restructuring plan.
The online marketing company reported a wider net loss of $8.65 million, or $0.40 per share, for the fourth quarter, compared to a loss of $10.6 million or $0.52 per share in the same period a year ago. Revenue also declined by 6.7% to $8.66 million, missing analysts' expectations.
In an effort to achieve profitability goals, Digimarc announced a restructuring plan that is expected to impact up to 90 employees, or approximately 36% of its workforce. The company stated that the cuts would reduce its annualized cash expenses by $16.5 million and result in about $5.5 million of other annualized cash cost savings.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.