Software suppliers issue earnings warnings

Systems management software maker BMC Software that its revenue in the last quarter was lower than anticipated.

Systems management software maker BMC Software that its revenue in the last quarter was lower than anticipated.

BMC said its preliminary revenue for the quarter ending 30 June was between the $305m (£186m) and $312m range, below its earlier estimates of $320m to $335m in revenue. 

Purchasing delays were concentrated among the company's largest accounts, according to BMC. Sixteen software licensing transactions of more than $1m were completed during the quarter, the first of BMC's 2004 financial year year, compared with 25 transactions of that size in the same quarter a year ago.

Content management software supplier FileNet and integration software developer SeeBeyond Technology also warned of shortfalls, contributing to the growing ranks of software companies turning in underwhelming preliminary results in the midst of a slow market.

Siebel Systems also said it too had missed its forecast, which it attributed both to purchasing delays and the turbulence of the enterprise software market

FileNet cited delayed large transactions to explain its missed estimates, with revenue for the quarter was $85m (£52m). It had previously forecast revenue of $90m.

Spending on integration technology did not pick up during the quarter, causing SeeBeyond's revenue to come in below forecasts of between $28m (£17m) to $29m. SeeBeyond said its restructuring costs of $6.6m (£4m) related to layoffs and facility consolidations.

BMC Software will report its final results for the quarter on 28 July. FileNet and SeeBeyond will report on 23 July.

Stacy Cowley writes for IDG News Service

 

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