Gruppe Formula SpA, the Torino, Italy-based software and services group expects to finish the year in the red after a third quarter when it lost the equivalent of $2.3m on revenues which rose 40.1% to $13.9m. For the first nine months, the company recorded net losses of $5.5m, down from losses of $2.5m on revenue 42.1% up at $36.5m. The company said that professional services revenue increased more than 60% over the previous year and, to satisfy market demand, they invested in new staff. This increased costs faster than the rise in revenues and booming demand for services forced a slow-down in shipping new products. Sales of management support tools were also below budget which directors blame on the concentration of IT investment into Y2K problems.
