SunGard Data Sees Shortfall Due To Y2K Fearsgreenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread
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October 4, 1999 SunGard Data Sees Shortfall Due To Y2K Fears Filed at 9:59 a.m. EDT By Reuters
WAYNE, Pa. (Reuters) - Software and services company SunGard Data Systems Inc. projected Monday third quarter and full year earnings to be below Wall Street estimates, citing weaker sales from Y2K fears.
The company expects to report third quarter earnings of 30 to 33 cents a share, compared with a Wall Street consensus estimate of 37 cents a share, as compiled by First Call/Thomson Group.
For the full, year, the company is expecting earnings between $1.32 to $1.38 a share, compared to its previous expectation of $1.43 a share.
The company is expecting third quarter net income between $39 million and $43 million.
The company reported earnings of 31 cents a share in the third quarter of 1998 and $1.12 for the full year 1998.
``As feared by investors, Y2K has inhibited license sales of the company's derivatives and risk management software,'' the company said in a statement, referring to potential problems regarding the inability of some computers to recognize the year 2000 in date entries.``Although these sales have been weaker than SunGard expected, much of this weakness has been offset by the strength of SunGard's other businesses,'' SunGard said.
``Despite this reduction in our 1999 outlook, we reaffirm our long-term goal of 20 percent annual growth including for 2000,'' said James Mann, chairman and chief executive. ``We believe that the adverse impact of Y2K on our 1999 sales of derivatives and risk management software is a unique and temporary phenomenon.''
-- PH (firstname.lastname@example.org), October 04, 1999