Santa Ana’s MSC.Software Corp., which makes software used by manufacturers to test their designs, said Tuesday restructuring charges would lead the company to post a loss in the first quarter.
The company expects sales of $56 million to $58 million for the quarter, falling short of Wall Street’s views of about $64 million. In 2006, MSC reported $67.4 million in first-quarter revenue.
The company didn’t give figures for the loss it expects. Analysts expected MSC.Software to post a profit of about $2.2 million.
Its stock dropped nearly 5% in afterhours trading.
MSC.Software said it expects to show a restructuring charge of about $7 million on its books, due to costs from a big round of job cuts earlier this year.
At that time, the company said that it would take charges of $6 million to $8 million to cover severance pay and other costs.
MSC.Software said it had higher-than-normal revenue a year ago because of the sale of its PLM business, which brought in an additional $2.5 million.
Adjusting for the year-ago sale and the restructuring charge, the company said its services business declined about 40%. Other businesses, including the software licensing and maintenance revenues saw small gains.
The company had a market value of about $595 million, at a recent check.
It recently came out of a federal investigation into delayed and restated financial results dating back to 2001.
It has since caught up on its filings and expects to report first quarter results on May 9.