FileNet moves Watermark to California

In a dramatic move to stem the flow of red ink, FileNet (Costa Mesa, CA,

http://www.filenet.com) will move its Watermark division from Burlington, MA, to its Costa Mesa headquarters. It was just 18 months ago that FileNet purchased Watermark from David Skok for $61 million.

In light of poor quarterly profit results, FileNet has announced staff reductions through "headcount reduction, attrition, and reduced hiring." It will eliminate some duplication between its development teams as a result of the consolidation.

The company expects that only a small number of Burlington employees will relocate to California. FileNet assures that the $9 million quarterly loss will not mean any changes for the Saros unit (Bellevue, WA).