Supply chain management software vendor Manugistics struggled to rekindle software sales in its second quarter. Over the three months ending 31 August 2002, software sales fell 26% to $18.1 million, accounting for just a quarter of the company’s overall revenues of $69.9 million.

The decline meant that net losses doubled to $47.7 million, despite a $8.3 million reduction in the quarter’s operating expenses.

Chairman and CEO Greg Owens says that he expects software revenue in the third quarter to be up slightly over the preceding period, but that total revenue, which is now dominated by support and services, will remain flat. In order to further reduce costs by between $5 million and $7 million a quarter, the company says it will cut its workforce by between 10% and 15% by the end of its financial year in February 2002.