There was a bloodbath in the shares of Ashton-Tate Corp on Wall Street yesterday after the the Torrance, California firm warned that it will likely report a $15m loss for the second quarter and may also report a third quarter loss, after a dramatic slump in sales. The shares had slumped $4 even to $18.75 […]
There was a bloodbath in the shares of Ashton-Tate Corp on Wall Street yesterday after the the Torrance, California firm warned that it will likely report a $15m loss for the second quarter and may also report a third quarter loss, after a dramatic slump in sales. The shares had slumped $4 even to $18.75 in a generally dull market. Ashton-Tate said it expects to report significantly attenuated revenues for the second quarter to June 30, perhaps going as low as $55m compared with $71.9m for the quarter to July 31, 1988 and $89.8m for the first quarter of 1989. The fall is primarily from the continuation of its previously announced program to reduce substantially US distributor and reseller inventories and from lower than expected upgrade revenues. Some $8m of the projected $15m loss will be the result of write-off of product rights and inventories principally related to Decision Resources’ product line acquired back in 1986.
