Company Hopes to Remedy First Quarter Losses
CRM supplier Remedy Corporation's first quarter announcement reflects a slowing economy and delayed IT spending.MOUNTAIN VIEW, CA--Remedy® Corporation, supplier of Information Technology Service Management (ITSM) and Customer Relationship Management (CRM) to more than 10,000 customer sites, announced preliminary financial results for the first fiscal quarter ended March 31, 2001. The Company expects to report revenue between $64 and $65 million, with a net loss between $1.6 and $2.3 million, or a basic loss per share between $0.05 and $0.07. These figures exclude goodwill amortization and a $3.3 million one-time charge relating to the previously announced discontinuation of its eProcurement product line. When those variables are added in to the mix, basic loss per share is expected to range between $0.20 and $0.22.
"The slowing economy, combined with delayed IT spending, adversely affected our first quarter license revenues," said Larry Garlick, Chairman and Chief Executive Officer. "Several of our larger enterprise customers told us very late in the quarter they were postponing certain purchases until the economic environment improves. Remedy has the right focus, the right people, and the right products in the right markets. During this time of economic uncertainty, we will continue to focus on serving our customers and on returning to more acceptable growth and profitability."
The announcement also contains forward-looking statements that involve risks and uncertainties, including statements that relate to the final financial results for the quarter ended March 31, 2001 and the future of operation. The Company's actual results may differ materially and could be attributed to such factors as: accounting adjustments that may be made during the close of the Company's March 31, 2001 quarter; the pace of IT spending and general economic conditions; the ability to hire, retain and train employees; increases in sales cycles, the recognition of an increasing portion of revenues at the end of the quarter; an inability to quickly scale down costs; changes in pricing or compensation policies; and significant fluctuations in the stock price and other factors. Full discussion can be found in the "Risk Factors" section of the Company's Report on Form 10-K filed with the Securities and Exchange Commission for the period ended December 31, 2000, copies of which are available on request from the Investor Relations department of the Company.
Remedy's products are known for their fast deployment and radical adaptability to accelerate an organization's move to e-business.