Imaging software firm warns of hardware difficulties ahead
Peerless says outlook not good until year 2000
An imaging software company has issued a profits warning which it said will extend into the year 2000 because OEMs which use its products in their products are failing to sell as many machines as they had anticipated. Peerless Systems reported that while its second quarter results showed an increase in net profit and turnover increased by over 40 per cent, the outlook for the sector will be disappointing in the future. That caused its shares to plunge on Wall Street by over $13. However, the implications for Peerless customers, some of which are large OEMs, is likely to be far more severe. Peerless had a turnover of $8.5 million in its second quarter and showed net profits of $1.5 million. The hardware companies which use the Peerless imaging software have been hit by lack of demand as well as the Asian economic woes which have seriously affected many manufacturers during the course of the first nine months of 1998. Peerless shares stood at just over $7 on Wall Street when trading closed on Friday. ®
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