Sales and profits look good for Legato
Sales and profits look good for Legato
In the round of earnings announcements from the US this week, storage software vendor Legato posted a narrower first quarter net loss and still refuses to comment on the buy out rumours.
Legato's conference call with financial analysts saw the company announce that rising software sales have contributed to a 33 per cent jump in revenues, Reuters reports. Legato told analysts that it still forecasts a 20 per cent growth in revenue for the first quarter and they expect the sales to continue to grow.
This news helped Legato shares to rise by 4.8 per cent to US$5.92 on the Nasdaq market. Their Net loss for the first quarter was $2.6 million, which compares favourably with a net loss of $46.7 million for the same quarter in 2002. Legato saw revenue rise to $74 million, created by a 20 per cent increase in software sales. Legato believes it will be cash flow positive throughout this year.
Reuters reports that analysts believe Legato will post a second quarter profit of 1 cent a share.
At the conference call Sandy O'Halloran, Vice President of Investor Relations said again that Legato will not comment on the rumours that it is about to be bought out by EMC.
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