Portal revises Q1 financial outlook

(Telephony) Portal Software announced yesterday that its first-quarter projections ending April 30 will be lower than expected--between $42 million and $44 million.

The Cupertino, Calif.-based software company anticipates reporting a pro forma loss between 19 cents and 21 cents per share for the first quarter. The results exclude amortization of goodwill and developed technology in conjunction with the November 2000 purchase of Solution42.

“Our results reflect a greater-than-anticipated downturn in global economic spending, particularly in the technology and telecommunications sectors, similar to what many other technology companies have experienced,” said John Little, founder and CEO of Portal.

As a result, Portal plans on cutting costs for the second quarter by 20% to 25% through work-force layoffs, the consolidation of facilities and asset write-offs. In addition, the company foresees a restructuring charge linked with these reductions in the quarter ending July 31.

Portal’s technology, customer base and solid market leadership will help the company through this downturn, Little said.

“We have strong position, and we are well positioned to weather this current economic climate,” he said.

Final results for the quarter ending April 30 will be released May 17.