MicroAge Inc, The Tempe, Arizona-based systems integrator and reseller, has reported a fourth-quarter net loss of $12.4m on revenue that slipped 2.5% year-over-year to $1.53bn. The loss amounted to $0.59 per share, including a $7.9m in restructuring charges associated with ongoing staff reductions and facility consolidation. The results were far worse than Wall Street expected, as the consensus estimate for the quarter called for a profit of $0.04 per share.
The company blamed the poor quarter on competitive pressures and a general Y2K-related lockdown by customers – echoing the sentiments expressed earlier this week by rival Inacom Corp, whose latest quarter also came in far below expectations. Micro Age says it will continue its focus on streamlining operations and cutting costs, but would not elaborate on its near-term plans. Looking ahead, lingering Y2K issues will likely preclude a return to profitability in the first quarter, the company said.
