Add Landmark Systems (Nasdaq: LDMK) to the list of mainframe software vendors with a poor June quarter.
After market close Tuesday, the provider of software for managing business systems said it expects to report a breakeven second quarter. The lone analyst surveyed by First Call predicted a profit of 8 cents per share for the quarter ended June 30.
Landmark sees second quarter revenue ranging between $13.2 million and $13.4 million, down from $14.3 million in the comparable period a year earlier. The company blamed the shortfall on a failure to close enough "large volume" contracts for mainframes.
The company did not any deals worth more than $300,000 during the second quarter.
"This reflects continued softness in the enterprise mainframe software market following the large capacity additions made last year in anticipation of Y2K," said Kathy Clark, president and CEO. "However, we believe this represents a temporary situation and continue to view the mainframe space as an important base business for Landmark, while we simultaneously broaden our capabilities into other promising growth areas."
Landmark is the latest mainframe software vendor to warn of a letdown in the June quarter. Last week, Computer Associates (NYSE: CA), BMC Software (Nasdaq: BMCS) and Compuware (Nasdaq: CPWR) issued profit warnings.
Ahead of the second quarter preannouncement, shares of Landmark closed Tuesday's regular trading at 5 5/16, down 7/16 for the session.>