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[RELATED: Black Box CEO To Step Down Following Rough
Year ]
Because of the sales force's continued shortcomings,
McAndrew said, Black Box lowered its annual earnings
target from a range of $920 million to $930 million to a
range of $905 million to $910 million.
McAndrew said he plans to fix the issue with the sales force
by replacing another 10 percent of its roster, which will jack
up the percentage of employees the company will have
replaced since the beginning of 2015, from 20 to 30
percent, within the next quarter.
However, Black Box did see some bottom-line success
during the quarter, according to McAndrew, who said that
the company reached its Q3 profit guidance – despite lower
revenues - thanks to the higher-than anticipated gross
profit margin and the company's cost-containment efforts.
The company's cost-cutting actions increased net earnings
9 percent year over year, from $5.3 million to $5.7 million,
an improvement compared with the company's net loss of
$129.8 million in the second quarter.
However, he admitted that the company cannot bank on
"cutting its way back to success," and that Black Box needs
to "remain diligent" on improving its business goals,
specifically its commercial sales force.
Black Box generally met analysts' projections for the
quarter, announcing that it beat earnings-per-share
expectations of 36 cents by a penny. But it slightly missed