SeeBeyonds 2Q Revenues Disappoint

The company is not the only EAI vendor to post poor earnings results.

Enterprise application integration software maker SeeBeyond Technology Corp. today announced disappointing preliminary results for its second quarter, ended June 30.

The company, based in Monrovia, Calif., expects to report second quarter revenues in the range of $32 to $34 million, down from the prior quarters $40.4 million in revenues.

Earnings per share are expected to be a loss in the range of 8 cents to 10 cents. Pro forma net earnings per share are expected to be a loss in the range of 5 cents to 6 cents per share.

Wall Street expected SeeBeyond to turn in operating earnings of a penny a share, according to Thomas First Call.

Jim Demetriades, founder, president and CEO of SeeBeyond, said in a press release that while he remains confident in SeeBeyonds technology and market position, the challenging market conditions continue to affect the enterprise software sector.

"As companies around the world continue to look for innovative ways to connect, integrate and optimize their operations, we believe the demand for eBusiness and Application Integration technology will remain vital in the foreseeable future."

SeeBeyond is not the only EAI vendor to post poor earnings results.

Late last month Tibco Software Inc. - hit with what CEO Vivik Ranadive described as a triple whammy – posted $56 million in second quarter losses, or a loss of 27 cents per share.

Pro forma net losses for Tibcos second quarter were $2.9 million, resulting in a pro forma loss of 1 cent per share.

License revenues were also down for the Palo Alto, Calif. company. For the second quarter of 2002, Tibco booked $35,773, compared with $60,329 for the same quarter last year.

On June 4th, Tibco warned analysts that its pro forma earnings would range between zero and 2 cents a share. Preliminary revenue was projected to be in a range of $63 to $65 million, with EPS losses in the range of 18 cents and 23 cents a share.

At the same time, the company announced that Frank Bergandi, executive vice president of worldwide sales and field operations, resigned. No replacement was named at the time.

Referring to the triple whammy, Ranadive said in an analyst call that the combination of a slow U.S. economy, customers postponing spending on IT initiatives and poor execution within his own sales force hit Tibco hard.