Add Applix to the list of software companies that won't meet second quarter forecasts.
After market close Thursday, the provider of business software said it expects to report a second quarter loss ranging between 28 and 32 cents per share, on revenue of about $11.6 million. The lone analyst surveyed by First Call predicted a per-share loss of 7 cents for the second quarter.
Following the announcement, shares of Applix fell to 5 in afterhours activity on the Island electronic communications network. The stock closed Thursday's regular trading at 7 3/8, down 1/4 for the session.
Applix blamed the shortfall largely on a greater-than-expected drop in its legacy Applixware business, combined with slower-than-expected growth in sales of Internet-based applications. Web software rose about 13 percent sequentially, and was disappointing because of fewer deals in Europe and the Pacific Rim, the company said.
"We experienced disappointing results in converting our pipeline of prospects this quarter, resulting in delayed orders not lost orders, which I attribute to the transition of our sales organization," said Alan Goldsworthy, president and CEO.
He remained optimistic about Applix's long-term prospects. "Although we expect that our legacy Applixware revenues will continue to decline over the remainder of 2000, we expect to see improved revenue growth for the eBusiness product lines throughout the remainder of this year," Goldsworthy said.
Increased spending on marketing, branding, and sales, along with costs related to the planned spinoff of the VistaSource unit, also fueled higher losses, the company said.>