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CNNfn after the bell
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February 11, 1999: 5:55 p.m. ET
Boston Scientific to cut staff by 2,000; J.D. Edwards issues warning
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NEW YORK (CNNfn) - A software firm warned of weaker times ahead and a medical company described layoffs in Thursday's round of after-hours news.
Software provider J.D. Edwards & Co. (JDEC) warned that its results for the upcoming quarter will fall short of expectations. The technology company said its fiscal first quarter profit would be between 2 cents and 4 cents per share. Analysts surveyed by First Call had anticipated per share earnings of 9 cents. Revenue is expected to fall in the range of $218 million to $223 million.
J.D. Edwards blamed the continued downturn in global economic conditions and an unanticipated slowing in software purchases, resulting from an increased focus on Year 2000 readiness. The company also said benefits from internal operational changes were slow to take effect.
On a more upbeat note, fast food giant Wendy's International Inc. (WEN) met expectations in the fourth quarter. Excluding a $25 million non-recurring charge, the restaurateur's operating income totaled $36 million, or 28 cents per diluted share, in line with analysts' estimates but below the 34 cents per share posted for the comparable period last year. Revenue fell to $477.5 million from $512.7 million.
Supermarket chain Food Lion Inc. (FDLNA) also posted earnings in line with Wall Street estimates in the fourth quarter. Net income totaled $84.5 million, or 18 cents per diluted share, on revenue of $3.18 billion. For the comparable period last year, the company earned $87.3 million, or 19 cents per diluted share, on revenue of $3.22 billion. Same store sales for the fourth quarter jumped 3.7 percent.
In non-earnings news, Boston Scientific Corp. (BSX) will take a $26 million charge against fourth quarter earnings and lay off 2,000 employees, about 16 percent of its work force, as part of its effort to integrate recently acquired Schneider Worldwide and streamline its manufacturing operations. The company, which develops, manufactures and markets medical devices, expects these initiatives to be completed over the next year. 
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