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New Era sees dark age
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July 6, 1999: 8:18 p.m. ET
Shares of NEON nose-dive in after hours following 2Q results warning
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NEW YORK (CNNfn) - Shares of software maker New Era of Networks Inc. plummeted in after hours trading Tuesday after the company warned of a second-quarter loss.
NEON (NEON) saw its stock fall from 44-1/16 to 20 after announcing that it expects to report a net loss of 12 cents to 22 cents per share before special charges.
Analysts polled by First Call Corp. had expected the Englewood, Colo.-based company to earn 12 cents per share.
The company blamed the shortfall on expenses it had incurred related to building its infrastructure and the failure of a number of sales to close by the end of the quarter.
New Era said it expects revenues for the quarter to be in the range of $25 million to $30 million, compared with $11.5 million in the year ago period and $29.6 million in the first quarter ended March 31.
"Although we are unhappy about falling below our internal goals for the quarter," said chief executive officer Rick Adam, "we are confident in the overall strength of the market for the company's products."
NEON develops, markets, and supports application integration software and provides application integration services. Financial institutions such as Chase Manhattan (CMB) and Merrill Lynch (MER), use NEON's proprietary software, according to Hoovers, and the company said it has 1,200 customers worldwide.
The company's flagship product is the IBM MQSeries Integrator, which is jointly marketed and sold with International Business Machines (IBM). Other products include NEON Business EventManager and NEON Physician Access.
The company expects to report actual results on July 20.
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New Era of Networks
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