The Scotts Valley, California-based software development services provider warned investors that it is likely to record a GAAP loss for its first quarter. The company expects to make a loss of 1 to 3 cents a share on a GAAP basis, against revenue of $71m for the quarter.
Previous guidance from the company had pointed to 3 to 5 cents a share on $79m revenue.
The company clearly expects the gloom to linger after also cutting its second quarter forecasts as well. It now expects second quarter revenues to be flat sequentially. Analysts had been expecting revenue in the $83m range for the quarter. Q2.
The company cited the usual excuses for its weak performance – slower closure rates in the US and Europe for large deals and a continued soft spending environment.
The company also noted that sales of its JBuilder Java IDE product also declined more sharply than the company had anticipated during the first quarter.
Shares of Borland fell nearly 3% to $7.49 at the close of Nasdaq trading yesterday. The company reports its full results on April 21.
