SSA blames ERP market for profit warning

System Software Associates has issued a profit warning for its fourth quarter, blaming a slowdown in the ERP applications market and last-minute delays in purchasing licences.

System Software Associates (SSA) has issued a profit warning for its fourth quarter, blaming a slowdown in the ERP applications market and last-minute delays in purchasing licences.

The announcement follows the supplier's delisting from the main Nasdaq stock market this September to the Nasdaq Small Cap market and a string of profit warnings over the past few years.

For the period ended 31 October, however, SSA expects turnover to be below expectations at about $66m (£41m). Although it claims licence revenues rose between 35 and 40 per cent, this growth was offset by a decline in services sales.

Robert Carpenter, chairman and chief executive of SSA, said: "We will continue to analyse business operations, focusing on all aspects of the company's infrastructure, including the strength of it's financial position."

As a result, he added, the firm will retain Houlihan, Lokey, Howard & Zukin as its financial advisors to help it "in the identification and exploration of strategic business opportunities".