BEA Systems cuts staff, issues warning
- 05 November, 2001 08:15
Application server software leader BEA Systems Inc. announced it would have layoffs and warned its profits and revenues for the fiscal third quarter, ended Oct. 31, would be lower than expected due to the weakening economy.
BEA said Thursday it would cut 9 percent to 10 percent of its 3,300 employees by year-end. Meanwhile, it expects to report earnings of 5 cents to 6 cents per share on revenue between US$217 million and $221 million for its third quarter. Analysts had been expecting BEA to report earnings of 8 cents per share on $253.5 million in revenue, according to Thomson Financial/First Call.
For the fourth quarter ending Jan. 31, BEA expects sequential single-digit growth on earnings of 6 cents to 7 cents a share. Analysts expected BEA's earnings to come in at 9 cents a share.
The company will issue its third-quarter results Nov. 13.