Software Firm’s Shares Dip as Product Is Delayed
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IRVINE — State of the Art Inc. shares fell 6% Wednesday, after the maker of accounting software said it experienced a two-week delay in the release of a new product. The company also said second-quarter revenue fell short of an analyst’s expectation.
State of the Art said it has $1.8 million in backlogged orders due mainly to the delay in the release of its latest software product, M.A.S 90 Evolution/2 level 2.0. State of the Art stock closed at $7.75 a share, down 50 cents, on the Nasdaq Stock Market.
The firm said preliminary revenue for the quarter ended June 30 rose 17% to $9.9 million from $8.4 million a year ago. “The bottom line is that it’s below an analyst’s estimates of $12 million for the quarter,” Chief Financial Officer Joseph Armstrong said.
The Irvine-based company had orders of $11.7 million in the quarter, and the backlog of about $1.8 million, its highest level ever, heading into the third quarter, Chairman David Hanna said.
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