Summary: Soft sales and even softer international currencies finds Informix warning investors that lower-than-expected earnings are forthcoming. It's a harsh reality for a company that just three months ago looked like it was doing all the right things.
It was a long day -- despite the short trading day -- for data management specialist Informix (Nasdaq: IFMX). The software maker's stock was down more than 30% by noon as the company reported that earnings will be coming in at a fraction of the $0.12 a share that was projected.
The financial results won't be released for another two weeks, but weakness overseas finds Informix now expecting to fetch just one to three pennies a share.
The company was making huge strides in winning back investor confidence earlier this year. In March the stock began building favorable momentum after the company completed the acquisition of e-commerce player Ardent Software. A month later, the stock was trading above $20 a share as quarterly operating profits tripled.
"These results demonstrate that we have started to benefit from our strategic refocus," wrote President and CEO Jean-Yves Dexmier at the time.
"Way Ahead" was the company's new slogan -- but now those days seem far behind. Yet, is the same overexuberance that played itself out in the spring coming full-circle this summer? Granted, recent market distaste for online retailers has taken the luster out of providing complete e-commerce solutions. Coding infrastructure is a thankless job in a ghost town. But are shareholders taking the Informix i.Sell product line literally? While the strength of the dollar should never be accepted as a solitary excuse for a fiscal lapse, Informix is still profitable. Given time to fully digest Ardent and a return to favor of online merchants, can i.Buy be around the corner?
Your Turn:
Read the company's press release and tell us what you think on the Informix discussion board.
Next Steps:
Informix Q1 Announcement, April 2000
