Wednesday April 19, 8:46 pm Eastern Time
CompuCom says sees charge and loss for Q1
DALLAS, April 19 (Reuters) - CompuCom Systems Inc. (NasdaqNM:CMPC - news), a provider of infrastructure solutions, said Wednesday it expected to report a first quarter charge and a loss of 15 cents to 18 cents per share.
Analysts on average anticipated a loss of 1 cent per share, according to First Call/Thomson Financial.
Reflecting the overall softness in demand for hardware, software and services in the corporate PC marketplace, CompuCom said it also estimates first quarter revenues to be between $550 million to $565 million with product revenues of $490 million to $500 million and service revenues between $60 million to $64 million.
In addition, CompuCom said it expects to record a special after tax charge of about $3 to $4 million, or 6 to 8 cents per share. Excluding this charge, CompuCom sees an estimated net loss of $7 to $9 million, or 15 to 18 cents per share for the quarter.
``Although product revenue increased in March, it was not enough to overcome the Year 2000 related market softness we saw in January and February,' said Ed Coleman, CompuCom's chief executive officer. ``The combination of our services being closely aligned with product volumes and the lack of new project starts due to Year 2000 concerns contributed to services revenue being lower than expected.'
According to the company, the restructuring charge primarily consists of costs associated with the reduction of both staffing and facilities.
CompuCom expects to announce final results for its first quarter on April 27, 2000. |
