Cambridge Technology sees lower Q1 EPS
THURSDAY, MARCH 18, 1999 6:12 PM EST
CAMBRIDGE, Mass., March 18 (Reuters) - Software developer Cambridge
Technology Partners Inc. said Thursday that its first quarter per
share earnings would fall short of Wall Street's expectations, due to
slower than expected sales.
The company said its per share earnings for the first quarter would
range between 12 cents and 14 cents. Analysts had expected the
company to earn 24 cents a share, according to First Call Corp.
Cambridge said revenues would range between $148 million and $151
milion for the quarter, noting that analysts had expected between
$163 million and $170 million.
Cambridge stock plunges on profit warning
FRIDAY, MARCH 19, 1999 12:13 PM EST
NEW YORK, March 19 (Reuters) - Cambridge Technology Partners Inc.
(NASDAQ:CATP) saw its stock lose nearly half its value in frenetic
trading on Friday following the latest in a string of profit warnings
by the computer consulting firm.
Cambridge shares were down $9, to $12, in late-morning trade. The
stock was the most active on the Nasdaq stock market and was also the
leading net loser.
The stock's fall, to a new low, came a day after Cambridge forecast
that its sales and profits for the first quarter and full year would
fall short of analysts' estimates.
"Investors have decided to exit the stock," said Steven Birer, an
analyst at BancBoston Robertson Stephens. "At the end of the December
quarter, people might have felt that the company was leaving its
problems behind. I think there was disappointment it that."
Brier, who is maintaining a buy rating on the stock, said Cambridge's
troubles were to be expected, given how it was restructuring along
business rather than geographic lines.
"The company is in turn-around mode," he said. "It's trying to make a
comeback but is having a difficult time about it."
Adams Harkness cut its rating on Cambridge by two notches, to market
perform from strong buy, due to the profit warnings and the prolonged
restructuring.
On Thursday Cambridge said it expected first-quarter earnings of up
to $0.14 a share, about $0.10 below analysts' estimates. It said
revenues would be up to $151 million, compared with Wall Street
forecasts of up to $170 million.
Cambridge also said 1999 earnings would be as much as $0.74 a share
on revenues of up to $675 million, against a forecast of $1.15 a
share on revenues of $795 million.
Last September the company said it expected project delays to slow
sales growth in 1999 by up to 45 percent.
Wolf Haldenstein Files Class Action Against Cambridge Technology
Partner's Inc.
TUESDAY, MARCH 23, 1999 11:11 AM EST
NEW YORK (March 23) BUSINESS WIRE -March 23, 1999--Wolf Haldenstein
Adler Freeman & Herz LLP announces that it has filed a class action
lawsuit in the United States District Court for the District of
Massachusetts on behalf of all persons who purchased common stock
issued by Cambridge Technology Partners, Inc. (NASDAQ:CATP)
("CAMBRIDGE" or the "Company") at artificially inflated prices during
the period November 25, 1998 through March 18, 1999 (the "Class
Period") and who were damaged thereby.
The Complaint alleges that the defendants violated the federal
securities laws (Section 10(b) and 20(a) of the Securities Exchange
Act of 1934) by misrepresenting or failing to disclose material
information about Cambridge's results of operations, financial
condition and the failure of its reorganization plan which resulted
in continued slow sales in its first fiscal quarter.
As a result of defendants' false and misleading statements and
omissions, the price of Cambridge's stock was artificially inflated
during the Class Period. At the end of the Class Period, the Company
announced that its reorganization plan was not having the impact on
the Company's problems in its 1998 First Quarter that defendants had
led the market to believe and that as a result its sales were still
well down. Meanwhile defendants took advantage of the stock's
artificially inflated price to sell significant amounts of their own
holdings for proceeds of over $3,139,000. A substantial amount of
defendants' insider selling took place only one month before
defendants' announcement of March 18, 1999 regarding the failure of
the Company's reorganization plan.
Plaintiff seeks to recover damages on behalf of class members and is
represented by the law firm of Wolf Haldenstein Adler Freeman & Herz
LLP (www.whafh.com). The Wolf Haldenstein firm has a full service
commercial practice consisting of more than 40 attorneys based in New
York City and San Diego. The firm's litigation department has been
recognized by courts throughout the country as highly experienced and
skilled in complex litigation, particularly with respect to federal
securities laws, class actions and shareholder litigation. The firm's
qualifications have repeatedly received very favorable judicial
recognition. Additionally, the firm has achieved recoveries of over
one billion dollars for defrauded investors and shareholders.
If you are a member of the class described above, you may, not later
than sixty days from March 23, 1999, move the court to serve as lead
plaintiff of the class, if you so choose. In order to serve as lead
plaintiff, however, you must meet certain legal requirements. If you
wish to discuss this action or have any questions concerning this
notice or your rights or interests with respect to these matters,
please contact Wolf Haldenstein Adler Freeman & Herz LLP at 270
Madison Avenue, New York, New York 10016, by telephone at (800)
575-0735 (Michael Miske or Gregory Nespole, Esq. or Fred Taylor
Isquith, Esq. or Shane T. Rowley, Esq.) via e-mail at
classmember@whafh.com or visit our website at www.whafh.com
All e-mail correspondence should make reference to Cambridge.