Visigenic Software Inc has experienced something of a blip in its financial progress with worse-than expected first quarter results plus an unexpected charge that increased its losses quarter-on- quarter. The San Mateo middleware company reported first quarter net losses of $2.6m, or $0.19 per share, after a $753,000 charge. Part of the charge was for a version of the company’s VisiChannel ODBC driver that it was producing for Platinum Technology Inc, a shareholder in Visigenic. It was originally based on SmartSockets middleware, but Visigenic began developing a version based in its VisiBroker technology. Visigenic then told Platinum that it would not be releasing it commercially – it would just be for Platinum, which Platinum didn’t like and promptly handed back under the terms of their agreement. Software accounted for 78% of revenues, with services making up the rest. First Call’s average estimate was for losses of $0.11 per share, but it turned in $0.13 excluding the charge, and $0.19 after it. The company is expected to reach profitability by the fourth quarter.
