FMC to report Q3 net loss as spending deferrals worsen

FMC to report Q3 net loss as spending deferrals worsen

Canadian investment technology firm Financial Models Company is expected to report a third quarter net loss on declining license sales and professional services revenues.

In a preliminary results statement for the quarter ended 30 November, 2002, FMC is anticipating a net loss in the range of $0.7 million to $0.9 million on revenue of $17.5 million to $18.0 million. Recurring revenue from application services and licence maintenance is expected to remain at the approximate $14 million level of the second quarter ended 31 August, 2002. However, both licence sales and professional services revenue have declined from Q2 levels.

Stamos Katotakis, president and chief executive officer of FMC, comments: "The effects of continued poor performance of equity markets on the investment management industry have been significant. The industry has been characterised by reduced and deferred spending on software and related services throughout this year. The spending deferrals worsened in the third quarter."

Cash is expected to remain at the $21 million level on hand at the end of the second quarter, adds Katotakis.

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