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IN BRIEF / Technology

Roxio Slashes Forecast on Weak Demand, Sales

June 26, 2002|Reuters

Roxio Inc., whose software is used for home burning of CDs, slashed its quarterly earnings forecast by more than 80% and cut its revenue outlook, citing weak retail sales, particularly in Europe.

Shares of Santa Clara, Calif.-based Roxio fell to $8 in after-hours trading after closing down 2.4% at $14.95 on Nasdaq.

Roxio said it expects to report revenue for its fiscal first quarter of $31 million and earnings per share, excluding noncash charges, of 2 cents. Including charges it expects to report a per-share loss of 15 cents.

The new guidance compares with a previous forecast of $35 million in revenue and pro forma earnings per share of 15 cents. The company said it saw indications that near-term demand would be weaker than it had expected.

Analysts said the warning was not unexpected.

"There's been a lot of negative announcements by major personal computer OEMs [original equipment manufacturers] and that couldn't have helped Roxio's quarter," said Justin Cable, analyst with B. Riley & Co.

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