DORDRECHT, THE NETHERLANDS – 29 October 2003 – Seagull Software (AEX: SEAGULL), a leading provider of software products for connecting legacy applications to Internet architectures, today announced that it expects to report revenues in the range of $9 million to $10 million for the half-year ending 31 October 2003, which would result in a net loss for the period in the range of $3.5 million to $4.5 million. While Seagull Software had provided no guidance to the market with respect to revenues or earnings for the half-year period, the loss is outside of the expected range, and is expected to challenge the Company’s ability to achieve its goal of profitability for the full financial year.
“Typically we have many transactions that do not close until the last day, so we can not predict our performance until the very end of the period,” commented Mory Motabar, Seagull Software Chief Financial Officer. “This time several prospects and customers with whom we have been pursuing large transactions have already indicated that the transactions would not materialize this month. This is giving us early visibility into our half-year performance.”
The Company is optimistic about sales prospects for the second half of the year, but cautious about its ability to make up for the expected loss in the first half. “Interest in our products is robust, but in general customers are taking longer than ever to make purchase decisions. We are still experiencing extreme conservatism in IT spending across all of the industries we serve,” said Motabar.
Seagull Software plans to announce final results for the half-year period on 25 November 2003.
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About Seagull Software
Seagull Software specializes in powering legacy-aware application development, helping organizations accelerate the delivery of business solutions. Seagull Software’s LegaSuite™ is an integrated software platform for connecting IBM mainframe, ICL, iSeries and UNIX/VT applications to the Web and to other, newer-generations of applications and service-oriented architectures including XML, J2EE, .NET, (X)HTML and Web Services. For more information, visit www.seagullsw.com.
Committed to providing the best customer experience, Seagull Software’s technology is in use in more than 8,000 Global 2000, mid-market and public sector organizations worldwide, and by well over 2 million end users. Seagull Software has direct operations in the United States, the Netherlands, England, Ireland, France, Germany, Sweden and Australia, supplemented by distributors serving approximately 30 additional countries.