Onyx falls short for fourth quarter

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While SAP and Siebel set barnstorming examples for the applications market, others are not faring so well in the CFM space. Onyx Software has confirmed that the market shouldn’t be looking for it to break even in its fourth quarter ended 31 December.

Formal results will be announced late this month, but the company has preannounced that it expects fourth quarter revenues to be in the $19.1 to $19.3 range – around $6.5 million. The company said it had been wrong-footed because the level of revenues that it had previously expected to be sufficient to make break even had increased during the quarter as a result of lower margins on services provided by partners.

Things are not about to get any better in the near future either. Onyx expects service revenues in the first quarter of 2002 to be lower than the final quarter of 2001. CEO Brent Frei tried to put a positive spin on the results, arguing: “Despite severance and excess facilities expenses, our cash position at quarter end was only a couple of million dollars below the level at the end of the third quarter.”

Inevitably the results will raise speculation about the long term future of Onyx as an independent company. Options on the table would clearly include takeover by a larger company or the prospect of a merger with rival Pivotal.

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