System Software Associates (SSA) has issued a profits warning for its fourth fiscal quarter, blaming a general slowdown in the enterprise resource planning (ERP) applications market and last minute customer delays in purchasing licences.
The move follows the supplier's delisting from the main Nasdaq stock market this September to transfer to the Nasdaq Small Cap market and a string of profits warnings over the past few years.
For the period ending 31 October, 1999, however, SSA expects turnover to be below analysts' expectations at between $66 and 67 million. Although it claims that licence revenues rose between 35 and 40 per cent, it said this growth was offset by a decline in services sales.
The slowdown was the result of lower licence fee sales in previous quarters this year, and continued purchase delays due to the Year 2000 problem. The supplier expects to publish its financial results on 1 December, 1999.
Robert Carpenter, SSA's chairman and chief executive, said: "A significant amount of progress has been realised over the last 60 days, as indicated, in part, by the increase in software licence revenue."He continued: "We will continue to actively analyse the company's business operations, focusing, in part, on all aspects of the company's infrastructure, including the strength of it's financial position."
As a result, he added, the firm will retain Houlihan, Lokey, Howard & Zukin as its financial advisors to help it "in the identification and exploration of strategic business opportunities".
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