Software AG Systems Inc, the Reston, Virginia-based middleware spin-off of German giant Software AG, has reported first-quarter net income of $5.4m, essentially flat with the year-ago quarter, on revenue down 4.0% at $53.6m. Earnings per share were also flat at $0.17, beating the recently-revised First Call consensus of $0.16. The company had warned earlier this month of a revenue shortfall due to a decline in product license sales and a softness in Y2K remediation work. Y2K uncertainty is said to have caused unexpected delays in the closing of orders in the quarter as customers pushed back decisions on product upgrades. Before the warning, analysts had been looking for earnings of $0.21 per share.
