Company financials: Neon hit by contract cancellations

Company financials: Neon hit by contract cancellations

Postponed and deferred purchasing decisions are expected to impact final year figures at middleware vendor New Era of Networks (Neon). The US-based company says it expects to report revenues of approximately $40 million for the final quarter and $188 million for the full year 2000, significantly down on expectations.

"As is typical in software companies, we usually have a large percentage of our software licensing contracts closing near the end of the quarter," says Rick Adam, Neon chairman and CEO. "At the end of the fourth quarter we had an unusually high number of customers and prospects postpone or defer their purchasing decision. Our results are disappointing and below our expectations."

Loss per share is expected to be approximately $0.35 for the quarter and $0.15 for the year, including an approximate $0.10 per share charge related to increasing provisions for bad debts. Additionally, Neon will record a restructuring charge as part of its Q4 2000 results. The company will release full fourth quarter and 2000 year end financial results on 23 January, 2001.

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