Cambridge Technology Partners Inc has confirmed Wall Street’s suspicions that the fast-growing computer consultancy is experiencing slower revenue growth amid customer concerns over the Year 2000 problem. The company admitted to analysts last week that concerns over revenue growth, which prompted its shares to fall 22% on Friday, were justified, as it reduced its growth target for fiscal 1999 from 50% to between 40% and 45%. Cambridge said it was seeing slowdowns and delays in projects due mainly to customer concerns over Y2K issues. Part of the blame was also attributed to re-evaluation of 1999 budgets by some customers. Cambridge has enjoyed a historical growth rate of about 50% per year which, it seems, is a bit too lofty to maintain. In July, it reported second-quarter net income of $13.6m, or $0.22 per share, on revenue up 52% at $146.3m (CI No 3,455). The company insists, however, that despite revenue glitches it is still comfortable with analysts’ expectations of earnings of $0.25 per share on revenues of $162m – $165m and $0.28 per share on revenue of $182m – $185m for the third and fourth quarters, respectively. It also says its still expects EPS of between $1.35 and $1.40 for fiscal 1999. Cambridge shares fell $0.9375 on Tuesday, to close at $26.4375.
