NOVEMBER 25--For the first quarter of 2003, Cedara Software (Toronto, Canada; www.cedara.com) revenue of $6.3 million was down $5.0 million, or 44%, compared to the same period last year. The decline in revenue occurred mainly in sales of software licenses, for which new orders from customers were sharply lower. This was due to a temporary inventory overhang of software licenses held by customers, resulting primarily from Cedara's bulk sales of licenses in the preceding fiscal year.
Operating expenses for the quarter declined $1.3 million, or 16%, compared to FY2002. When excluding the impact of severance costs, operating expenses declined by $1.8 million, or 21%.
There was a loss of $4.0 million, or $0.19 per share, compared to a loss of $1.8 million, or $0.11 per share, in the same quarter of last year.
Cedara expects revenues for FY2003 to be lower than those of FY2002. Current estimates are for revenues of approximately $34 million to $37 million, down from $45.5 million in FY2002. This decline reflects the residual impact of the earlier bulk sales of software licenses.