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FTP Software stock slips

FTP Software shares fall on news that the company will not meet second-quarter expectations.

Shares of FTP Software (FTPS) fell nearly 8 percent in trading today, following the company's announcement that second-quarter results are expected to fall "substantially" below expectations and plans for revenue growth in 1997 may not materialize.

FTP shares closed at 4-11/16, down 13/32 from yesterday, when the company announced its preliminary quarterly results would be less than earlier expectations.

The software company, which develops Java-based push technology for network administrators, had been hoping to grow revenues by 25 to 30 percent this year but is now about six months behind its turnaround schedule.

FTP has posted losses over the past five consecutive quarters and its quarterly revenue declined in the past year from year-ago levels.

Driving its weak performance have been slow sales of products such as its IPX/IP gateway products.

FTP also announced this week it plans to realign its company into three business units. One will be the agent-directory management unit, which will handle the company's Java agent and directory technologies for its network administration and management applications. The second, the VIP network applications unit, will handle desktop and Web-based network application solutions. Finally, the IP technology unit will provide client and server gateway technologies, as well as other IP technology components.

The structure, which is expected to be operational in the next 60 days, is designed to create a sharper focus on customers' needs and product development priorities, in addition to speeding up the delivery of products.