System Software falls, misses Q4 estimates
CHICAGO, Dec 9 (Reuters) - Shares of System Software Associates Inc fell 33 percent after the company's fiscal fourth quarter results failed to meet estimates, prompting at least one analyst to cut
estimates and downgrade the company.
System Software, which provides client/server software and services, traded down 5-1/16 to 10-3/16.
On Monday, System Software reported fiscal fourth quarter earnings of $0.01 a share after charges versus a loss of $0.13. Fourth quarter revenues grew to $125.6 million from $109.4 million.
The company said in a statement fourth quarter revenue growth was good in North America and Europe, but disappointing in Asia, primarily due to regional economic factors.
''They obviously did not achieve the level of business in Asia that they wanted to and suggested to folks that might be a problem going forward,'' said Bert Hochfeld, analyst for Josephthal Lyon & Ross, adding he may cut his fiscal 1998 earnings estimates.
The company was not immediately available for comment.
BT Alex. Brown cut its rating on the stock to market perform from buy and decreased estimates. It said licensing revenues of $89.6 million missed its estimate of $98 million, but service revenues were
stronger-than-expected.
''(O)n an apples-to-apples basis, EPS were $0.18 in the quarter compared with our estimate of $0.24,'' the BT Alex. Brown report said.
According to First Call, the consensus estimate was $0.23 a share before charges. |
