CNET también está disponible en español.

Ir a español

Don't show this again

Tech Industry

Wall Data slides on profit warning

Shares of Wall Data Inc. (Nasdaq: WALL) slid 1 1/2, or 16 percent, to 8 1/8 Monday after warning that it expects to take an operating loss of between $11.5 million and $12.5 million in its first quarter.

Company officials said restructuring charges of between $13 million and $14 million as well as the resignation of the company's CEO will also impact on the enterprise software company's operations.

John Wall, chief executive officer, has resigned as CEO and a director of the company "to pursue other interests," the company said in a separate press release. The company's board of directors named Kevin Vitale, president of the RUMBA business and formerly chief operating officer of Wall Data, as the company's new president.

Revenue for the quarter will be between $19.5 million and $20.5 million, resulting in an operating loss between $11.5 million and $12.5 million, the company said. Wall reported profit of $2.2 million in the year-ago period.

Final results for the quarter ended July 31 will be released on August 19, after the company calculates its income tax provision and evaluates the potential write-off of deferred tax assets. Cash and short-term investments as of July 31 totaled about $60 million. First Call had expected the company to lose 45 cents a share for its first quarter, and predicted annual earnings of 3 cents a share.

The company also said it will consolidate the Web-to-host and related Cyberprise product line into the RUMBA product line, and will discontinue pursuit of the corporate information portal market.

Wall Data will restructure operations around the RUMBA business and take a one time charge between $13 million and $14 million during its second quarter for workforce reductions, facility closures and certain asset write-offs. The non-cash portion of this charge is about $5 million, the company added.

Wall Data Shares went south after the company warned it would net a loss in its fourth fiscal quarter last May.

Wall Data will be aided in its evaluation of strategic alternatives by Bear Stearns & Co. A review is expected by August 31.