Application development company Wall Data Inc has warned that results for its fourth quarter and fiscal year ended April 30 quarter will be significantly lower than anticipated and said it expects to report a net loss for both periods. Analysts surveyed by First Call were expecting earnings of $0.25 per share from the Kirkland, Washington-based company.
Revenues for the quarter are expected to be between $19m and $21m, down from $33.2m during the year-ago quarter. Operating loss for the quarter will be between $14m and $16m, against operating income of $0.1m last year. Revenue for the full year should come in between $139m and $141m, up from $133.6m last year, while operating loss should be between $7m and $9m. Operating income in the prior year was $1.7m, excluding one-time charges in both periods.
The company says the revenue decline is largely the result of disruptions stemming from the restructure of the company into two separate businesses, the Rumba and Cyberprise units. It claims the reorganization of sales force and the transfer of customer relationships and service personnel had a more significant impact on fourth-quarter results than it anticipated. The also announced that it has engaged investment bank Bear Stearns & Co to help it evaluate strategic alternatives for the two businesses.
