Secure Computing Corp, the San Jose-based provider of network security software, warned Wednesday that revenues for the first quarter will be roughly 36% below the $12.8m reported in the year-ago period and that it will report a loss for the quarter. On a per share basis, the loss should come in at about $0.30, before a non-cash stock option expense charge of $4.7m, and will be $0.58 including the charge. Products and services revenue for the quarter will be down 37% year-over-year from the $10.3m reported in 1998. Analysts surveyed by First Call were looking for earnings of $0.10 for the quarter.
The company is blaming the revenue decline on unexpected delays in closing several large transactions in the federal and international sectors (which management expects will now close in the second quarter), lengthening of the sales cycle on enterprise level transactions and normal seasonality. It will report final results for the quarter at the close of market on April 20, and promises further details on what went wrong at that time. á
