Onyx went out of 2003 in the red and its management team isn't reckoning on recovery coming in the first quarter of 2004.
Onyx reported a 2003 fourth-quarter loss of $1.6 million, or 11 cents per share, which compares with a loss of $1.7 million, or 13 cents a share, in 2002. Total revenue fell to $13 million from $17.2 million a year earlier.
For fiscal 2003, the company did cut its loss to $6.1 million, or 46 cents a share, from a loss of $13.8 million, or $1.10 per share, in 2002. But revenue fell to $58 million from $69 million a year earlier.
As recently as last month, the company had expected "to achieve a non-GAAP operating profit in the first quarter", but this has now been revised.
"The business environment remains challenging for Onyx," said the company in a statement. "While a wide range of results remain possible in the first quarter of 2004 - including the potential to realize the upside of many sales opportunities - license and service activity had a slower than expected start in the first quarter.
"Management now believes that the probability of reporting a non-GAAP profit for the first quarter of 2004 is much less likely compared to the assessment at the time of the company's preliminary announcement" the statement added.