An aggressive restructuring plan has helped put software company Descartes Systems Group Inc. back on track, the company said on Tuesday as it reported a smaller third-quarter loss.

"With our restructuring behind us and our customers and new products in front of us, we are now a stable operation that will continue to help our customers deliver," said Art Mesher, who assumed the role of chief executive in early November.

Descartes, whose software connects shippers, carriers and logistics companies, said it lost $2.7 million, or 7 cents a share, for the period ended Oct. 31. That compared with a year-earlier loss of $4.2 million, or 10 cents a share.Analysts polled by Reuters Estimates had expected, on average, a loss of 7 cents a share.

Shares of Descartes rose 15 Canadian cents, or 8 percent, to C$1.99 on the Toronto Stock Exchange. In New York, Descartes was up 7 cents at $1.66.Revenue at the Waterloo, Ontario-based firm dipped to $11 million from $16 million last year. But total expenses, excluding restructuring, fell to $13.8 million in the quarter from $20.2 million last year because of restructuring plans it announced in May.

"Our first focus is to drive the income line and profitably line, which I don't believe is necessarily associated with driving revenue up," said Mesher in a call with analysts."It has to do with having the right business that makes money and getting rid of bad business that does not make money."

In a bid to return to profitability, Descartes terminated leases and closed offices in the United States, Brazil, France, Germany, the Netherlands, Hong Kong and China this year. It also cut more than a third of its work force.

The company announced it had adopted a shareholder rights plan, though it made clear the move was not in response to any takeover offer.

(From Reuters, November 30, 2004)

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