SLOW QUARTER TAKES TOLL ON SOFTWARE MAKER'S STOCK.Byline: Colleen col·leen n. An Irish girl. [Irish Gaelic cailín, diminutive of caile, girl, from Old Irish. McElroy Bloomberg Bloomberg A major global provider of 24-hour financial news and information including real-time and historic price data, financials data, trading news and analyst coverage, as well as general news and sports. Business News Computer Associates International Inc. shares plunged 21 percent after the software maker warned of disappointing third-quarter sales as its switch to new products bogs down in Europe. Computer Associates shares dropped 13 to 48-3/4 in trading of 17.9 million, making it the most active U.S. stock. Computer Associates has been shifting its focus to selling client-server software that manages computer networks and scaling back products that run big mainframes. The company said its sales force in Europe hasn't been aggressive enough in building the new business, resulting in revenue as much as 17 percent below third-quarter forecasts and less than year-ago results for Europe. ``They are bringing on new technology. There are execution issues that need to be resolved,'' said Monish Bahl, an analyst at Parker/Hunter. The company said it expects revenue for the three months ending Tuesday to be $1 billion to $1.1 billion. Investors expected revenue of $1.2 billion, up from $1 billion a year ago. Computer Associates said it appointed a new head of its European business in September, although the company declined to say who the executive is. European sales make up about $1.5 billion of the company's $4 billion in annual revenue, said Doug Robinson
Doug Robinson is a guide and instructor in the Sierra Mountains. , senior vice president for investor relations Investor relations The process by which the corporation communicates with its investors. . ``Although client-server is posting nice numbers, it will be September 1998 before revenue becomes significant enough to drive overall revenue growth,'' Gibbs Moody mood·y adj. 1. Given to frequent changes of mood; temperamental. 2. Subject to periods of depression; sulky. 3. Expressive of a mood, especially a sullen or gloomy mood. , an analyst at UBS UBS Union Bank of Switzerland UBS United Bible Societies UBS United Blood Services UBS United Buying Service UBS Used Bookstore UBS University Business Services UBS Universal Building Society (UK) UBS Ulaanbaatar Broadcasting System Securities, wrote in a research report. Earnings for the quarter remain on track to meet estimates, the company said. |
|
||||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion