RATL ($19 ) beats lowered 1Q forecast
CUPERTINO, Calif., July 10 (Reuters) - Software development tools maker Rational Software Corp. (NasdaqNM:RATL - news) on Tuesday posted fiscal first-quarter earnings that beat lowered expectations, as its pro forma net income fell 40 percent from a year ago on slower spending in Europe and Asia.
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For the quarter ended June 30, Rational reported pro forma net income of $16.2 million, or 8 cents per diluted share, excluding one-time items, down from $26.9 million, or 13 cents a share, last year.
Net losses grew to $24.8 million, or 13 cents a share, in the fiscal first quarter of 2002, compared with a net profit of $19.4 million, or 10 cents a share, a year ago.
Pro forma earnings per share for the periods reported exclude one-time charges for purchased in-process research and development, amortization of goodwill and purchased intangibles and amortization of stock-based compensation related to recent acquisitions, as well as restructuring charges.
``Rational was negatively impacted by weakness in our international business -- particularly right at the end of the quarter,'' Paul Levy, Rational's chairman and co-founder, said in a statement.
Analysts has expected the company to earn an average of 7 cents a share, excluding items, with estimates ranging from 7 to 8 cents a share, according to Thomson Financial/First Call.
On July 2, Rational warned slower-than-expected demand in Europe and Asia would cause its results to trail expectations and said earnings would be 7 cents or 8 cents a share on revenue of $172 million to $176 million.
Actual revenues fell in the high end of that range, growing 3 percent to $175.8 million compared with $170.3 million in the year-ago quarter.
Prior to the company's warning, analysts' consensus forecast was for earnings of 8 cents a share on $185 million in sales.
Rational shares were trading at $19 on Instinet following the company's after-hours announcement. The stock, which finished 82 cents lower at $18.77 on Nasdaq, has underperformed Standard & Poor's computer software index by 7.54 percent since the end of 1999. |
