(Nasdaq:VRYA) announced on Tuesday that it will be unable to meet its own forecast, as projected in February of this year. At that time ViryaNet had projected a Q1 growth of between 8%-10%. Now the firm says its first quarter loss for 2001 will be greater than expected and blames the change on its inability to close several large license deals.
"Our clients from the Telecommunications sector are influenced by the worldwide economic downturn, which has led them to either delay making new purchases, or to request extended payment terms," said the company's President and CEO Win Burke.
The company's Q1 income is now only expected to reach $4.5 million, as compared with its Q4 2000 income of $8.2 million. Investors had expected a Q1 income of $8.9 million, which means the company achieved only half of its own forecast.
ViryaNet is now expecting a first quarter loss per share of between 35 cents to 40 cents, as compared with the company's previous guidance of a loss of about 7 cents per share, as reported in the fourth quarter of 2000. ViryaNet lost $1.02 a share in its first quarter of 2000.
On Monday ViryaNet shares on Nasdaq closed at 75 cents, down from their high last year of $9.88.