Vitria Warns of Weak Quarter - TheStreet

Vitria Warns of Weak Quarter

The business software maker's shares drop on the revised estimates.
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Vitria Technology

(VITR)

said Wednesday that it expects second-quarter results to miss expectations, citing the weak economy.

In the quarter ended June 30, the company expects to lose $6.5 million to $7 million, or 20 cents to 22 cents a share, which includes certain stock-based compensation and restructuring charges.

Excluding the charges, the business software maker thinks it will lose $6 million to $6.5 million, or 18 cents to 20 cents a share. Thomson First Call didn't carry estimates for Vitria.

In last year's second quarter, the company lost $41 million, or 32 cents a share, on revenue of $26.5 million. Excluding stock-based compensation, impairment of goodwill and other items, the loss was $16.1 million, or 12 cents a share.

"The economic conditions remain challenging for the business integration market space, and as a result, our second-quarter revenue performance did not meet the company's objectives," said Gary Velasquez, chief executive.

Vitria expects second-quarter sales to be $17.7 million to $18.2 million. License revenue should total 25% of total revenue.

The company will release results on July 30. Shares of Vitria, which is based in Sunnyvale, Calif., were recently down 12.6% at $4.81.