J.D. Edwards expects loss for Q3
- 06 August, 2001 09:26
J.D. Edwards & Co. warned today that it expects to post revenue of about $US200 million for the quarter ended July 31. That would be the lowest quarterly revenue figure for the company since the first quarter of 1998, when it reported $178 million.
Last year's third-quarter revenue topped $261 million.
The business application vendor also said it expects to lose 10 cents per share from "normalised operations" in the current quarter. Analysts had expected a profit of 4 cents per share, according to an average of nine forecasts compiled by First Call/Thomson Financial.
The estimated loss doesn't include one-time charges for acquisitions and restructuring.
In a statement issued this morning, Chairman, President and CEO C. Edward McVaney blamed the revenue drop on a "worse-than-expected slowdown in the economy and in technology spending."
The US manufacturing and distribution markets were particularly hit hard, Chief Operating Officer Hank Bonde said in the statement, resulting in the deferral of several million dollars of software transactions. The company said it remains confident in its sales, marketing and overall strategies.
In May, the company said it had cut about 8 per cent of its workforce in a "revitalisation" effort. Final numbers for this quarter are scheduled to be released August 22.
J.D. Edwards stock was down about 18 per cent in midmorning trading today, to $9.15.