Two more software makers warned Friday morning that their current-quarter results would fall short of estimates, adding to the
recent parade of bad earnings news from the sector.
Software and professional services provider
JDA Software Group
said it now expects to earn 8 cents to 9 cents a share in the quarter, down from 12 cents a share a year ago. Excluding amortization expenses and other one-time charges, the company's new EPS forecast of 17 cents to 18 cents falls short of the consensus analyst estimate provided by Thomson Financial/First Call, which calls for EPS of about 22 cents.
JDA also said it sees second-quarter revenue of about $57 million, below the consensus estimate of $60.94 million. Software revenue is expected to be about $18 million.
In a press release, the company said, "While these results are below our previous forecast for the quarter, primarily due to a change in timing of several contracts, the fundamentals of our business remain solid with increasing revenues, pro forma earnings, and positive cash flow."
JDA added that its second-half pipeline remains strong.
Integration software provider
also blamed its expected shortfall on customer order delays, saying it now expects a first-quarter loss of about $2.5 million to $3.5 million, or 5 cents to 7 cents a share, including goodwill amortization, compared with a loss of $19.9 million, or 41 cents a share, in the year-ago quarter.
On a pro forma operating basis, the company expects to lose $1.5 million to $2.5 million, or 3 cents to 5 cents a share. Analysts polled by Thomson Financial/First Call had been expecting the company to post breakeven pro forma results for the quarter.
Revenue is expected to be $47 million to $48 million, with $28 million to $29 million of that coming in the form of license revenue. Wall Street had been looking for $48.93 million.
webMethods said the shortfall is the result of order delays. Company CEO Phillip Merrick added, "While demand for integration software remains high, the immediate urgency to purchase software is muted by the prevailing economic conditions."
Shares of webMethods were falling about 10% to $7.35 in Instinet premarket trading after closing at $8.13 Wednesday, while JDA Software plunged about 30% to $19.50 from its previous close of $27.