Computer hardware and software distributor Merisel Inc. said Wednesday it expects to report a larger fourth-quarter loss than anticipated and plans to cut 400 jobs or about 15% of its work force.
The El Segundo-based company said it expected to report a loss of 15 cents to 20 cents a share, before year-end adjustments and special charges, for the last quarter of 1999.
The analysts' consensus for the current quarter was a loss of 7 cents a share, according to First Call/Thomson Financial.
"Fourth-quarter results were affected by a significant revenue slowdown, attributed to deferred demand associated with Y2K and increases in front-end selling margins implemented by the company during the quarter," the company said.
For almost a year, there's been some worry that the flip of the calendar to 2000 from 1999 would leave computers vulnerable to the so-called millennium bug, which might make it impossible for computers to distinguish the year 2000 from the year 1900.