Tech Industry

IDX Systems sinks on 2Q warning

IDX Systems Corp. (Nasdaq: IDXC) plunged 26 percent Thursday, following Wednesday's announcement it expected to lose between 30 cents a share and 35 cents a share in its second quarter, well below forecasting firm First Calls consensus estimate of a 12 cent loss.

Shares in the health-care information provider were down 3 15/16 to 11 3/16, tumbling below their 52-week low of 13-3/8.

The stock was downgraded by USB Piper Jaffray from "buy" to "neutral."

IDX also said it planned to cut its job force by 5 percent, and shut down three product lines. The company said it will take a one-time charge of $19 million to $23 million from these moves, which are part of a cost-cutting effort to save $10 million annually.

Additionally, company said it expected its second quarter revenues to be in a range between $75 million and $80 million, down from $90.3 million in the comparable period of 1999.

"Given current market conditions, we believe that total revenue growth in 2000 will be below our previous guidance of 10 percent and that profitability in the core business may be pushed out until late this year or early in 2001," chief executive Richard Tarrant said in a statement.

The company competes with Shared Medical Systems (NYSE: SMS), according to Hoover's Online.

Reuters contributed to this report.