Peoplesoft?s shares were hit on Wednesday as it revised expectations for its first quarter results downwards again, saying that revenues and operating profits would miss analysts? expectations by even more than originally forecast.
The enterprise resource planning applications supplier now expects sales to come in at between $275-305 million, which represents between zero and 10 per cent growth compared with the same quarter last year.
This contrasts with estimates made when Peoplesoft announced its end of year figures in January (see VNU Newswire, 29 January, 1999). At the time, it said it expected sales growth to be between 20-25 per cent.
But the firm?s operating profits, excluding one off charges, are also anticipated to be substantially lower than forecast as a result of the revenue shortfall. As a result, its shares closed $0.9375 down at $14.625.
A Peoplesoft spokesman said: "The market is slowing down and so it?s taking our customers longer to sign deals. We?ve now amended our 10-K to say we don?t know what our future growth levels will be and so we?re suspending all forecasting as is legally required to avoid selective disclosure."
Although the vendor did not make any projections on net profits, the First Call analysts? consensus expects earnings of about $0.08.
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