Two more technology companies --
Reynolds and Reynolds
-- warned Monday that they will fail to meet Wall Street's earnings expectations.
Aspect, which makes equipment and software used to process customer service requests, said its revenue for the quarter will total between $137 million and $139 million. Based on those revenue figures, the company expects pro forma earnings of between 1 cent and 3 cents a diluted share. That includes a 6-cent-per-share gain from the sale of equity securities. The consensus estimate of analysts polled by
First Call/Thomson Financial
is 8 cents.
San Jose, Calif.-based Aspect blamed the projected shortfall on "the level of business in one of the company's North American regions, a delay in the awarding of multimillion-dollar contracts in its federal government region and a faster-than-expected decline in the company's hardware platform business."
"We are disappointed at the revenue levels in the second quarter," said Beatriz Infante, president and chief executive of Aspect, in a statement, "but the issues that surfaced very late in the quarter are isolated and are being corrected."
The company is slated to release its second-quarter earnings results on July 19.
Shares of Aspect were halted in after-hours trading at 43 7/8, up 11/16, or 2%.
Meanwhile, Reynolds and Reynolds said it will report a shortfall for the third quarter, with earnings per share coming in at about 31 cents a share, 7 cents less than the First Call/Thomson Financial consensus estimate.
The Dayton, Ohio-based maker of information management systems for car dealerships blamed the projected shortfall on results of a discontinued operation, its information solutions group. Discontinued operations results will likely be about 6 cents a share below the second quarter. About half of the shortfall results from lower sales and the bankruptcy of a customer, with the remainder representing an asset write-off related to the divestiture.
On June 20, the privately held
said it will buy the information solutions group for $360 million.
Shares of Reynolds closed Monday trading at 17 1/2, down 1/4, or 1%.
The companies were two of several technology firms that have recently issued earnings warnings for the latest quarter.
warned that its earnings would fall significantly short of Wall Street's estimates.
said Thursday that it
expects to lose 33 to 38 cents a share in the second quarter, compared to a First Call/Thomson Financial estimate of 19 cents a share. Also on Thursday,
warned that its quarterly earnings would fall short of estimates. Wednesday, several companies, including
, all issued
earnings warnings as well. The week's rash of profit warnings were kicked off by
, which issued a
warning late July 3 after stock markets had closed for the July 4th holiday.