Pervasive Software (PVSW) sees first-quarter earnings per share of 3 cents to 4 cents (on a GAAP basis) on $11.6 million to $11.8 million in revenue. Needhan downgraded the stock to hold.
Analyst Richard Davis says the company's first-quarter outlook is light for both its Database and Data Integration units. He cites a difficult selling environment for independent software vendor partners, continued pressure from large database vendors, a database product in need of an upgrade, and less-than-stellar sales execution for the company's Data Integration/ETL business.
Davis expects its database business to face continued competitive pressure over the near term. He has limited visibilty as to when sales execution may improve for ETL products. He cut his first-quarter EPS estimate from 7 cents (GAAP) to 4 cents, and 34 cents for fiscal year 2005 (June) to 30 cents.