Novadigm Inc, the Mahwah, New Jersey software distribution and management company has warned that its fourth quarter results will be well below expectations. It expects fourth quarter revenues to be between $6.7m to $7.2m, depending on reports from distributors, and it expects net losses to be in the range of $2.5m to $3.2m, or 14 to 18 cents per share. That’s quite a difference from what the few analysts that follow the company were expecting. According to Zacks Investment Research’s figures, they were expecting net profits of about $0.04 per share for the quarter. Novadigm points out that its warning includes a one-time charge of between $600,000 and $900,000, but that would amount to about one-third of a cent per share, so it’s quite a way off. The reason for the short-fall is a delay in signing a licensing agreement through a distributor, the charge, which is for staff cuts and the completion of the acquisition of a distributor. Going forward, the company says that will save it about $1m per quarter in running costs. In addition to its Enterprise Desktop Management client-server distribution software, Novadigm is trying to get into the push technology market, and currently has a case pending against Marimba Inc, which claims that Marimba’s fractional differencing technology, which is the bit that determines what needs updating, infringes on Novadigm’s patents.
