Enterprise application vendor JD Edwards has warned analysts that it will post a loss for its most recent quarter.
The loss, the first in its history, is expected to be around $25 million, but that will depend on the final revenue annoucement. Revenue is expected to be in the range $215 million to $225 million - representing growth of between three and 12 per cent.
JD Edwards will post full details of its financial results later this month.
Recently, JD Edwards' shares have been recovering from a low of $11.06 to around $14 but at the close of trade yesterday, they were down to $12.25.
Chuck Phillips, analyst at Morgan Stanley Dean Witter recently issued a new forecast for the year when he said JD Edwards would come in at around 13 cents per share profit for the year compared with 59 cents last year.
JD Edwards blamed the general downturn in application sales. Trevor Salamon, its northern Europe marketing director said: "I guess it's a disappointment but this is a year where you're going to have to ride it out. We've more than $500 million in cash and near cash equivalents - we're strong."
But analysts are seeing mixed responses in the market. Mairi Johnson, researcher at Lehman Brothers said: "They all blame Year 2000 but on a sample of 40 customers in this market, there is a very mixed reaction. Some are buying, some have bolted the door until Year 2000 is out of the way."
SAP recently surprised the market by bucking the trend, saying it would finish 1999 with revenues up between 20 per cent and 25 per cent.
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