NESY preannounces and obviously disappoints:
biz.yahoo.com
Tuesday October 12, 9:22 am Eastern Time
Company Press Release
SOURCE: NEON Systems, Inc.
NEON Systems Announces Preliminary Second Quarter Results
SUGAR LAND, Texas, Oct. 12 /PRNewswire/ -- NEON© Systems, Inc. (Nasdaq: NESY - news) released today preliminary results for its second quarter ended September 30, 1999.
NEON Systems expects earnings, excluding amortization and other non-cash charges, to be in the range of $0.07 to $0.08 per share, compared to analysts' consensus expectations of $0.08 per share. Net income for the quarter is expected to be approximately $750,000 compared to net income of $251,000 for the quarter ended September 30, 1998, an approximate 200% increase. NEON Systems expects to report revenues of $6.0 million for the second quarter ending September 30, 1999, compared with revenues of $4.1 million for the quarter ended September 30, 1998 and $6.1 million for the quarter ended June 30, 1999. The $6.0 million includes $4.3 million in new license revenues and $1.7 million in maintenance fees. The quarterly revenue represents a 45% increase over revenues reported for the quarter ending September 30, 1998, but is approximately 5% or $300,000 below analysts' consensus expectations. Complete operating results for the second quarter are expected to be released on October 26, 1999.
NEON has scheduled a conference call today at 4:30 PM CDT for financial analysts and others. Those interested in joining the call should call 1-800-491-3423. The conference call ID number is 608836. The conference call will be available for playback through October 18, 1999 via 1-800-696-1558.
NEON Systems' President and CEO, Joe Backer, stated ``second quarter revenues were slightly below the company's internal goals principally due to increasing pressure from our customers to delay business until the last few days of a quarter when they then attempt to extract concessions. At quarter's end, negotiations continued on several one million dollar-sized opportunities and several more $500,000 opportunities that we expect to close in future periods. We will continue to take a longer-term view of our business and resist making concessions in response to these quarter-end pressures. We remain confident in the strength of our core Enterprise Access and Integration software products, Shadow© Direct(TM) and Shadow OS/390 Web Server(TM), which continue to perform well even in a seasonally difficult quarter'.
NEON Systems, Inc. is a leading provider of Enterprise Access and Integration, Security, and Subsystem Management software for all industries. NEON Enterprise Access and Integration software products deliver rapid and cost-effective access to and connectivity between enterprise data, transactions, and applications. NEON Enterprise Security Management software products help companies protect valuable information with encryption/decryption technology for the Internet and password synchronization for interoperable computing environments. NEON Enterprise Subsystem Management software products economically enhance and maintain the high availability, integrity, and performance of key CICS© and IMS mainframe environments as the demand for existing and new applications increases. Headquartered in Sugar Land (Houston), Texas, NEON has sales, support, and distributor offices covering 25 countries around the world. NEON's website can be visited at www.neonsys.com.
This press release contains both historical information and forward- looking information. Numerous important factors affect the company's operating results and could cause the company's actual results to differ materially from the results indicated in this press release or in any other forward-looking statements made by, or on behalf of, the company, and there can be no assurance that future results will meet expectations. These factors include, but are not limited to, the following: 1) NEON's revenues and earnings are subject to a number of factors that make estimation of operating results prior to the end of a quarter extremely uncertain; 2) competition for NEON's products is intense; 3) the uncertainties of whether new software products and product strategies will be successful; and 4) the additional considerations and important risk factors described in the company's initial public offering prospectus filed with the Securities and Exchange Commission on March 5, 1999 and the company's subsequent securities filings, copies of which are available on request from the Investor Relations department of the company.
NEON and Shadow are registered trademarks and ShadowDirect and Shadow OS/390 Web Server are trademarks of NEON Systems, Inc. All other trademarks are the property of their respective owners.
SOURCE: NEON Systems, Inc |
