VRTS ($51-->$43)hits Q2 forecast, lowers guidance
UPDATE 1-Veritas' hits Q2 forecast, lowers guidance
(Recasts lede, adds company comment, stock performance,
details)
MOUNTAIN VIEW, Calif., July 17 (Reuters) - Data management
software maker Veritas Software Corp. <VRTS.O> on Tuesday met
Wall Street's second-quarter forecast but lowered its annual
growth target amid a prolonged slump in corporate technology
spending.
"While we anticipate completing the second half of the year
as one of the growth leaders in the technology sector, we are
changing our prior guidance of 35-50 percent annual revenue
growth to a new range of 25-35 percent to reflect the weakness
in the economy," Gary Bloom, Veritas president and chief
executive, said in a statement.
The Mountain View, California-based software vendor said
pro forma net income, excluding purchase accounting adjustments
for acquisitions, was $80 million, or 19 cents per diluted
share, compared with $57 million, or 13 cents, in the year-ago
quarter.
Analysts, on average, had expected the company to earn 19
cents a share on revenue of $391.3 million, according to
Thomson Financial/First Call.
The company's revenues fell short of expectations, growing
42 percent to $390 million from $275 last year. Nevertheless,
it joined a small group of technology companies that posted
year-over-year revenue growth for the three months ended June
30.
Including purchase accounting adjustments for acquisitions,
Veritas posted a net loss of $129 million, or 32 cents per
share, compared with a net loss of $172 million, or 43 cents a
year ago.
Veritas shares, which closed $3.26 higher at $50.42, have
underperformed Standard & Poor's computer software index by 47
percent since the end of 2000.
((Palo Alto bureau 1 650-461-3401 or
lisa.baertlein@reuters.com))
REUTERS
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