Following a profit warning earlier this month (CI No 3,576), Platinum Technology Inc says that it will not be engaging in any takeover activity for the next six months at least. Instead, the Oakbrook Terrace, Illinois database and systems management software and services firm says it will focus on improving the profitability of existing operations. Given that Platinum has just admitted that fourth quarter results will miss the target considerably, the board is simply bowing to the inevitable. The problem area is its Global Consulting Organization, which has been rapidly built up and is intended to provide a third of revenues. Completion of the deal to acquire Memco Software Ltd, a Tel Aviv, Israel-based provider of security software will be the last for some time while Platinum attempts to get back on track. The stock, currently at $14.50, is well down on the year’s high of $34.30.
