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Attacks hit software revenue
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October 10, 2001: 3:49 a.m. ET
Autonomy, Sage warn September 11 terror attack have had impact on business
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LONDON (CNN) - Autonomy expects third-quarter revenue to fall by as much as 31 percent, in the wake of the September 11 terror attacks.
Another UK-based company Sage Group (SGE), said on Wednesday it expected to report full-year figures in line with forecasts despite the impact on revenues from last month's attacks.
Autonomy, the San Francisco and Cambridge, England-based company, which makes software to manage data on the Web, was the first European software company to warn business was disrupted because of the attacks.
"The third quarter traditionally has a slower August but a compensating September," said Mike Lynch, Autonomy chief executive. "The events of September 11 interrupted the normal pattern, significantly impacting the quarter's revenue."
Software companies typically have a weak trading spell in July and August, and face a rush to complete contracts in September.
Autonomy expects revenue to be in the range of $9.8 million and $11 million, compared with revenue of $14.2 million in the three months ended June 30, 2001. Earnings per share are forecast at between 1 cent a share to a loss of 1 cent.
All three analysts polled by Thomson Financial/First Call had forecast a profit of 1 cent per share for the quarter ending September 30, with the lone analyst who forecast revenue predicting $13.8 million.
Shares in Autonomy (AUTN) fell 4.3 percent to 220 pence in early London trading. Autonomy had been valued at £5.2 billion ($7.4 billion) at its peak in October last year but saw its share price halve in value after issuing a profit warning on April 6 after it complained earnings would come under pressure as a U.S.-led economic slowdown spread into Europe.
The stock has fallen more than 87 percent this year, valuing the company at about £290 million. Shares in Sage slipped 0.3 percent to 169 pence in early trade.
Autonomy will report third-quarter results on October 25, while Sage will issue its results on December 5.
Analysts are expecting Sage to post a pretax profit of £122 million ($179 million) on revenue of £489 million for the year ended September 30, 2001, according to Reuters. 
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