JD Edwards predicts grim Q3
Another victim of the slowdown...
Supply chain software maker J.D. Edwards today admitted it will post a third quarter loss when it reports on 22 August.
The company blamed the slowing US economy for a 10 cents a share loss, a figure not helped by a $24m restructuring charge incurred during the period. With 112 million shares on the market, this means a total loss of $11m.
The company said it now expected revenues of $200m for the quarter; analysts were expecting around $226.7m.
Trevor Salomon, EMEA marketing director for J. D. Edwards, said the key to the shortfall was the turbulent US market, which caused a number of customers to defer spending decisions.
Salomon added: "Five deals worth $20m have slipped in the last few days. If they would've gone through then it indicates we weren't that far off the numbers."
J.D. Edwards will release the full Q3 financials on 22 August.
Shares in the firm are currently trading at $9.27, down 17 per cent in early trading - a long way short of a 52-week November high of $29.5.