Revenues for the quarter were $17.5 million, up from $17.0 million in the first quarter, but lower than the $20.4 million for the second quarter of 2000. Current quarter revenues were negatively affected by the global decline in IT spending, which resulted in lower than expected sales to large enterprise customers and to customers in Europe. License sales were $10.3 million for the quarter, an increase of 5.6 percent over the preceding quarter. Services revenues were $7.2 million, or flat relative to the preceding quarter.
The company also provided its guidance for the remainder of 2001. For the second half of 2001, the company expects a modest sequential improvement in revenues for the third and fourth quarters over the second quarter of 2001. Revenues for the full year 2001 are expected to range between $70 million and $77 million.
Net loss for the current quarter was $7.7 million, or $0.15 per share, compared with net income of $0.5 million, or $0.01 per share, for the second quarter of 2000. This loss reflected a 13.9 percent decline in revenues from the second quarter of 2000 related to the global decline in IT spending and higher sales and marketing expenses related to infrastructure investments made in the second half of 2000 to increase the company’s growth rate. These infrastructure investments had largely focused on enhancing the company’s sales and marketing capabilities in Europe and with large enterprise customers, the returns from which were negatively affected by the difficult economic conditions.
Commenting on the results, Eric Pulaski, president and CEO, stated, Despite the global slowdown in IT spending, our revenues for the second quarter were up over the first quarter, which positively reflects on the strength of our core products. In the second half of the year, we expect to report a modest sequential improvement in revenues and show a significant improvement in operating leverage as a result of the reorganization and restructuring that we began implementing earlier in the month.
Despite the economic challenges, we continue to be very optimistic about our market opportunity and the product offering BindView has created to maintain and grow our leadership position. To enhance our growth rate, we have increased our focus on improving our go-to-market strategy and product positioning and over the past few weeks have been working with McKinsey and Company to support our initiatives. We expect to complete this project by the end of August and will roll out a number of initiatives before the end of the quarter that we believe will improve our approach to the marketplace and how BindView positions and delivers its value proposition to our customers.
In this difficult market, we are fortunate to have built a strong balance sheet with more than $48 million in cash and short-term investments and no debt. We have a blue-chip customer base that includes over 80 of the Fortune 100 and 24 of the 25 largest banks in the country. We have also attracted a highly skilled, loyal employee base and have developed highly competitive software products and security services to capture market share in the IT administration and security management solutions market. We are confident that our core strengths, coupled with the actions that we are taking, will make the company financially stronger and more competitive, thus enhancing stockholder value.
