WebMethods Reports Lowered 1Q Earnings

By Renee Boucher Ferguson  |  Posted 2003-07-03 Print this article Print

Citing weakness in its North American commercial business, the integration software maker announced disappointing preliminary first-quarter earnings.

Citing weakness in its North American commercial business, integration software maker webMethods Inc. announced disappointing preliminary first-quarter earnings this morning. The Fairfax, Va., company expects to report greater-than-expected losses for the quarter ended June 30. WebMethods is expected to report total revenue in the range of $42 million to $43 million, somewhat shy of the $45 million to $50 million the company gave guidance for in April.
For the quarter webMethods also expects to report a net loss per share of 13 cents to 15 cents per share—well below the guidance given in the spring.
On April 29, webMethods said it expected to report net losses of 6 cents a share, to earnings of 2 cents per share. "Although integration remains a top spending priority for CIOs, we are not immune from the challenging U.S. macro economic environment," said Phillip Merrick, chairman and CEO of webMethods, in a statement. "We were cautious about our fiscal first quarter and the IT spending environment remained tough. We are disappointed by our financial performance and the unexpected weakness in our North American commercial operations." License revenue for the company is also expected to decrease from the prior quarter to a range of $21 million to $22 million, officials said.

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