Dealership technology provider Reynolds and Reynolds Co. will refocus on sales of its core dealer management system.
The decision, announced last week, comes in the wake of the resignation of the company's CEO, declining orders and lower quarterly earnings.
Reynolds, of Dayton, Ohio, had been marketing its Reynolds Generations Series Suite, a package of management and customer relationship software.
But only 60 dealerships have purchased the technology since its launch last year.
Last week Reynolds reported revenues of $242.8 million for its third fiscal quarter ended June 30. That was down 3 percent from the year-ago quarter. Net income for the quarter was $22.0 million, down 16 percent from the comparable quarter last year.
"We were pursuing many promising paths - in my view, too many," acting CEO Philip Odeen said. "Our transition to the next-generation system is taking longer than we expected."
Odeen, 68, who serves on Reynolds' board of directors, was named acting CEO after Buzz Waterhouse resigned on July 7. Odeen is former chairman of TRW Inc. A search for a CEO may take until December, he said.
Waterhouse, a former IBM executive, helped drive development of the Generations Series. He also introduced a new compensation plan for salespeople. But that plan was changed after the resignation.
A Reynolds salesman, who asked not to be identified, was critical of the former CEO.
"How do they plan re-establish the loyalty of their sales force?" he asked. "He (Waterhouse) created major chaos - kept fooling around with the compensation plan. Either he left, or the majority of the sales force would have left."
Odeen said Reynolds has implemented an improved sales structure, and a commission program that is tightly aligned with its strategy.