Some missed sales helped drive New Era of Networks Inc. (Nasdaq: NEON) 180 degrees from analyst expecations in the second quarter.
After market close Tuesday, the Denver, Colo.-based software vendor said it expects to report a loss ranging between 12 cents and 22 cents a share for the quarter ended June 30, not including taxes and acquisition-related writedowns. First Call's survey of nine analysts had predicted a profit of 12 cents a share.
CEO Rick Adam blamed the shortfall on a failure to close on some sales that had been expected at the end of the quarter. New Era also continued racked up costs from infrastructure spending, Adam said. "Although we are unhappy about falling below our internal goals for the quarter, we are confident in the overall strength of the market for the company's products," he said.
New Era, which sells software for integrating different corporate computer systems, expects to post revenue ranging between $25 million and $30 million. The company saw sales of $29.6 million in the first quarter, and $11.5 million in the year-ago period.
Several enterprise software vendors have seen their sales growth slow dramatically as corporate clients shift spending from new projects to Y2K troubleshooting.
Shares of New Era closed up 2 11/16 to 44 1/16, prior to Tuesday's warning. The stock was down in afterhours trading on Instinet. Of nine analysts polled by Zack's Investment Research, eight recommend New Era as a "strong buy", and one maintains the equivalent of a "moderate buy" rating on the stock.>