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MSC.Software Expects to Post Q1 Loss

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.

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