Mapics Down 11%, Analyst Sees Weaker Demand In FY99
From WSJ Interactive:
New York (Dow Jones)--Mapics Inc. (MAPX) shares fell as much as 13% to a new 52-week low Thursday despite fiscal first-quarter earnings that beat analysts' estimates by one cent.
In a conference call, the enterprise software maker told analysts it will probably see less demand for upgrades in 1999 as exisitng customers reroute money to fix year 2000 bugs, said Gruntal & Co. analyst Vivek Rao.
Rao said the weak short-term outlook prompted investors to sell.
The stock fell as low as 10 3/8 earlier, past the 52-week floor of 11 3/8 set Wednesday. It recently traded at 10 3/4, down 1 5/16, or 11%, on volume of 2.7 million shares, compared with a daily average of 192,200.
As reported, Mapics reported earnings of 26 cents a share for the fiscal first quarter ended Dec. 31, compared with a First Call Corp. consensus estimate of 25 cents and year-earlier net income of 21 cents.
Analysts' reactions to Mapics' news were mixed, with Advest Inc. upgrading the stock to strong buy from buy and NationsBanc Montgomery Securities Inc. downgrading it to hold from buy.
Advest analyst Ed McClendon said he believes corporate spending to fix year 2000 computer bugs has already peaked.
- Scott Scholten; 201-938-5394
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