Descartes working on a restructuring plan
Descartes has announced its financial results for its fiscal 2021 second quarter, reporting revenues of USD 84 million, up 4% from USD 80.5 million in the second quarter of fiscal 2020 and up from USD 83.7 million in the previous quarter.
The company also recorded a net income of USD 10.5 million, up 22% from USD 8.6 million in Q2/FY20 and down from USD 11.0 million in Q1FY21. Net income as a percentage of revenues was 13%, compared to 11% in Q2 FY20 and 13% in Q1FY21.
Since May Descartes has been working on a restructuring plan to reduce its cost base and further strengthen the company’s financial position. The plan is expected to reduce the company's global workforce by approximately 5%.
Restructuring activities are substantially advanced with activities anticipated to be completed over the next six months. Once completed, Descartes anticipates annualised cost savings of approximately USD 6 million to USD 7 million. (mw)