profile updated Jun 3, 2008, 5:22 PM
Remember 1999? It was such a good year here in the U.S. that the Prince song by the same name with the signature line "I'm gonna party like its 1999" became the anthem for the fin de siecle.
It the heady atmosphere of the time Workstream, barely four years old - a virtual old-timer by Silicon Valley standards - went public. Its shares opened at $9.25 a share, zoomed to $10.25 before closing on its first trading day at $8.56. That Workstream went public on Pearl Harbor Day in the United States may have been an omen, since a year later its shares were barely breaking $2. Today, the shares of this maker of talent management software that it provides by subscription over the web sell for about 50 cents.
Besides providing a suite of tools for medium-sized companies, Workstream also has a job board and career management and outplacement services. The human capital management tools and the worker-facing services are part of Workstream's two units - Enterprise Workforce Services and Career Networks. The company is headquartered in Ottawa, Canada and has a U.S. headquarters in Pleasanton, Calif.
To say that Workstream is a troubled company is being gentle. It has lost money every year since going public and for at least two years before that. In the most recent fiscal year ending May 31, 2007 the company lost $11.1 million on net revenues of $29.3 million. Add in the cost of its interest payments and the losses amount to $13.8 million.
It's an open question whether the merger with Empagio, a payroll processing and talent software company itself, can save Workstream. There even may be some doubt whether the deal will even close.
All this is too bad considering Workstream's product line has received positive notice over the years and its most recent launch of what it calls TalentCenter 7.0 has gotten good reviews. Released in fall 2007, TalentCenter 7.0 weds the offerings from many of the companies Workstream acquired during a buying spree between 2002 and 2006. Leighanne Levensaler, principal analyst with Bersin & Associates, was quoted in InfoWorld calling it a "truly integrated" HR platform and "not just a bunch of disparate applications."
Whether the new offering can gain traction quickly enough is a big question, especially given the turmoil in its executive suite. In 2007 there has been a complete turnover of its executive team. For instance, Deepak Gupta, appointed CEO in February 2007, was gone less than a year later. Philip Oreste was appointed CFO in June 2007. He, too, is gone.
News & Updates 
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Workstream Gets NASDAQ Compliance Notice (BusinessWire)
Workstream Inc. was notified by the Nasdaq Stock Market that it is no longer in compliance with exchange rules requiring the company to have a minimum $2.5 million in stockholders' equity, a $35 million market capitalization, or $500,000 of net income from continuing operations for the most recently completed fiscal year or two of the three most recently completed fiscal years. The Nasdaq staff requested that, on or before December 3, 2008, Workstream submit its specific plan to achieve and sustain compliance with all listing requirements, including the time frame for completion of the plan.
Nov 24, 2008, 2:36 PM -
Workstream Finds Some Good News - Sort Of (ere)
For the first time in many quarters Workstream (profile; site) was in the money - sort of - eking out a half-million dollar finish to its 2008 fiscal year. The talent management software company reported Thursday evening that it had an EBITDA of $516,000 for the fourth quarter that ended May 31. That compares to an EBITDA of ($4.5 million) for the previous quarter and ($1.3 million) for the fourth quarter last year. Jul 25, 2008, 3:54 PM -
Workstream Merger Is Off (Company Press Release)
Workstream has cancelled its merger agreement with Empagio. Jun 16, 2008, 1:53 PM -
Can Workstream Hang On? (ERE)
Battered by losses running into the millions, talent software provider Workstream (profile; site) is asking vendors to renegotiate bills as it struggles to lift its stock price above $1 a share. Jun 3, 2008, 5:23 PM
Products & Services
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TalentCenter 7.0
An integrated talent management system delivered by subscription over the web. It's offered in versions for enterprise and mid-market businesses. The mid-market version has essential tools such as ATS, assessment, performance, succession and compensation tools. The enterprise version contains broader offerings including an employee portal for onboarding and routine communications, training / development modules and more. -
6FigureJobs.com
One of the first job boards to exclusively feature executive and other positions paying in the six figures. Workstream acquired the site during its five year buying spree in the early 2000s. -
Allen and Associates
Focused primarily - but not exclusively - on the job seeker, Allen and Associates provides career advancement programs and services to both private and corporate clients. For job seekers it offers job search assistance, resume writing and review and industry and corporate research, as well as resume distribution. For business clients it provides assistance with layoffs and transitions, including outplacement to the displaced workers.