=DJ Wind River Off -3: Chmn: Co. Hasn't Changed 2Q Rev Views
Wind River Chairman Jerry Fiddler told Dow Jones that new customer demand
for Tornado II "is very strong" and said the company hasn't changed its
second-quarter revenue guidance. "We continue to grow comfortably and gain
market share every single quarter," he said.
Wind River is slated to report its fiscal second-quarter results Aug. 19.
Upgrades to Tornado by existing customers would have "no revenue impact to
us," Fiddler said, explaining that current Tornado users would receive
Tornado II for free as part the annual maintenance contract they sign with
Wind River.
In his research note, Hambrecht & Quist's Belkin said a derivative of
Tornado - Tornado for Managed Switches - that is targeted at the
telecommunication industry may not be released until August, from its
original June schedule.
The delay could push some $2 million to $3 million worth of orders to not
be recognized as revenue until the third fiscal quarter ending in October,
the analyst said. Belkin cuts his second-quarter revenue view to $35.5
million from $37 million.
Fiddler said the version of the Tornado software for the telecommunication
industry is "on schedule," adding that "nothing has happened that would lead
us to change our own internal revenue estimates," for that product.
The executive said the company's $21.9 million acquisition of RouterWare
Inc., completed last week, is expected to dilute second-quarter earnings by
one or two cents per share. The acquisition could possibly be accretive in
the third quarter, he said.
Belkin, who said he hadn't received any new earnings guidance from the
company, also cut his earnings and revenue estimates for fiscal 2000 ending
next January. He cut his earnings view to 63 cents from 73 cents, and his
revenue estimate to $155 million from $162 million.
Belkin also reduced his fiscal 2001 earnings estimate to 85 cents from 90
cents and lowered his revenue estimate for the year to $190 million from
$200 million.
In his note, the analyst said the company hasn't yet replaced former Chief
Executive Ron Abelmann, who announced his resignation last April. "Given the
extent of the transition issues currently weighing on Wind's shoulders, we
feel more comfort on the sidelines until a replacement is found," the
analyst said in his note.
Chairman Fiddler said the search for a replacement CEO is "moving forward
aggressively."
- Maria V. Georgianis; (201) 938-5244;
maria.georgianis@dowjones.com
(END) DOW JONES NEWS 07-08-99
03:26 PM |
