Don't get your hopes up for the first quarter results of Cotelligent Inc. (NYSE: CGZ)
The San Francisco-based IT services company on Thursday warned it would report a fiscal first quarter loss ranging between $13 million and $15 million, including one-time events. In the first quarter of 1998, Cotelligent earned $1.8 million.
First Call's survey of five analysts had predicted a profit of 30 cents a share.
Cotelligent, a provider of IT staffers for corporations, cited delays in corporate IT spending as enterprises -- especially financial services companies -- focus on eliminating Y2K-related computer problems. Revenue for the quarter ending June 30 will be more than $88 million, Cotelligent said.
The company said it would take a first quarter charge of $4.2 million to pay for reorganizing its five practice group operating structure. Cotelligent also plans to record a $20 million writedown of goodwill.
Of five analysts surveyed by Zack's Investment Research, four rate Cotelligent a "strong buy" and one recommends the company as a "buy".>