Printer Friendly

Sterling Says Acquisition Will Affect Fourth Quarter.

Sterling Software Inc has warned that its fiscal fourth quarter earnings won't make analyst expectations. The company blamed its recent $168m acquisition of Information Advantage Inc, completed last week, for the shortfall. A restructuring of its application management business to integrate the new business hurt its revenue in this area - which accounts for around half of total revenue. Application management revenue is expected to fall compared with revenue in the third quarter. Before acquisition charges, Sterling now expects earnings of $0.47, rather than the $0.52 Wall Street had been expecting. The quarter ends in September. For the year, Sterling expects to still meet its plan, and expects growth in the 20% range year-on-year for revenue and earnings. Sterling said it would repurchase 5 million shares of its common stock because it says it is undervalued.
COPYRIGHT 1999 Datamonitor
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1999 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Comment:Sterling Software Inc has warned that its fiscal fourth quarter earnings won't make analyst expectations.
Publication:Computergram International
Geographic Code:1USA
Date:Sep 6, 1999
Words:137
Previous Article:Benchmark Touts 'DLT at DDS Prices'.
Next Article:ITnet on the Look-Out for Takeovers.
Topics:


Related Articles
M&A Impact: Sterling Ambitions in Systems Management.
Sterling Reports Solid Third Quarter.
Sterling Commerce to Cut Staff, Sell XcelleNet Business.
Sterling Set to Rebound With Better-Than-Expected Q4.
Amersham Biosciences.
Amersham Biosciences.
Life Science instrument companies show gains.
Impressive operating performance for Life Science Index.
Acquisitions and efficiencies push profits higher.
Acquisitions and operating efficiencies push profits higher.

Terms of use | Privacy policy | Copyright © 2020 Farlex, Inc. | Feedback | For webmasters