InterTrust, the Digital Rights Management company, has begun a major restructuring that will eliminate 180 positions, or about 40% of its workforce. This is the third downsizing the company has made this year; in April it cut 43 jobs and in August another 37.
The latest reorganization is tied to InterTrust's decision to focus on selling its new Rights System software and patent licenses, while discontinuing investments in new ventures. The restructuring also reflects what company president David Lockwood acknowledged was the realization that "widespread acceptance of DRM technology is being pushed further out." Lockwood took over as president November 1, following the resignation of David Ludvigson.
For the third quarter ended September 30, 2001, sales were $1.9 million compared to $2.0 million in last year's third quarter. For the nine months, sales rose 28.5%, to $6.6 million, while the net loss increased to $93.7 million from $37.5 million. The company expects that with $142 million in cash and lower operating costs it can continue operating for three years without the need for new financing.
