Wicat Systems Inc. said it expects to show a loss for its fiscal third quarter ended Friday and has cut its work force to achieve cost savings and productivity increases.

The actions also include across-the-board cuts in management salaries and elimination of some management levels.The company said the changes are in keeping with restructuring of operations previously announced and are appropriate in view of recent earnings.

"Although these actions will negatively impact third quarter results due to severance costs and other associated expenses, positive effects of this restructuring are expected to be realized beginning in the fourth quarter," said a Wicat spokesman. "The company expects improved performance from operations in the fourth quarter."

Wicat President Robert W. Mendenhall said the losses are due in part to a slippage in sales of learning-improvement solutions to schools because some of the expected third quarter orders have moved into the fourth quarter and beyond.

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He said cost overruns in commercial and government projects contributed to the expected third quarter losses.

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