Danka Business Systems plc has reported a loss from operations of $3.8 million for the three months ending 31 December 2000, excluding the effect of restructuring charges. This compares with earnings of $41.6 million for the same period a year previously.
During the quarter Danka announced that it was to cut around 1,200 jobs, or 8% of its staff force worldwide, and would be closing and consolidating several facilities. As a result it recorded a pre-tax restructuring charge of $27.5 million in December.
The company’s retail service revenue and earnings from operations were negatively impacted by $11.3 million resulting from revised estimates of the amount of service that had been provided to customers and for which invoices had not been issued. Total revenue for the quarter declined by 18% to $498.1 million.
2-Feb-2001
