Troubled enterprise resource planning software and services supplier, System Software Associates Inc, has warned of yet another poor quarter, announcing that revenues for the fourth quarter, ended October 31, will come in lower than expected at $66m to $67m. SSA will release its full results for the quarter on December 1.
The Chicago-based company said the performance comes in line with the general ERP sector slowdown but declined to provide any guidance for the bottom line. Before the announcement, analysts surveyed by First Call were expecting a loss of $2.16 per share – which would be the company’s eighth consecutive loss in as many quarters.
SSA said an increase in revenue from software licenses of 35-40% during the quarter will be offset by a decline in services revenue that came as a result of lower software license revenues from earlier quarters, as well as continued softness in the market due to Y2K concerns. The company also cited several last- minute customer delays in software purchases.
SSA also said that, in light of its continuing struggles, it will carry out a complete analysis of business operations focusing. To that end, the company has retained the firm of Houlihan, Lokey, Howard and Zukin to assist in the identification and exploration of strategic business opportunities, although it would not be more specific about what type of options will be explored.
