SWRX-missed because of order delays. Bounce opportunity.
Softworks Shares Fall After Warning of 2nd-Qtr Loss (Update1) (Add closing stock price)
Alexandria, Virginia, July 26 (Bloomberg) -- Softworks Inc.'s shares fell 44 percent after the maker of data storage software said it would have a second-quarter loss from operations.
The shares of Softworks, which had 1998 sales of $43.8 million, fell 4 3/32 to 5 9/32 in trading of 5.4 million, more than 33 times the three-month daily average.
Softworks, based in Alexandria, Virginia, said second- quarter revenue will be $11.5 million to $12 million, causing a loss from operations of 2 cents to 3 cents a share.
Wall Street expected a profit of 4 cents a share, the average estimate of three analysts surveyed by First Call Corp., a projection shared by investor Web site EarningsWhispers.com.
The company attributed the results, which will be announced this week, to delays in the closing of several transactions. ''The revenue shortfall was not due to competitive reasons,'' Judy Carter, Softworks president and chief executive, said in a statement. ''Certain sales that did not close in the second quarter have closed or are expected to close during the third quarter.''
The company didn't immediately return phone calls seeking additional comment.
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