TCS sees Q2 results below forecasts

ANNAPOLIS: TeleCommunication Systems Inc., which develops wireless messaging

software, said on Friday its second-quarter results will fall below Wall Street

expectations because customers delayed purchases or failed to get financing for

previously signed contracts.

TCS said its second-quarter loss will be between 38 cents and 42 cents,

compared with Wall Street forecasts, which ranged from a loss of 31 cents to a

loss of 37 cents a share.

Revenues will be in the range of $15.7 million to $16.1 million, compared to

$17.1 million in the first quarter, and $12.5 million for the year-ago quarter.

TCS is the latest telecommunications vendor that has been hurt by a slowdown in

capital spending by carriers during the weak economy.

The company expects its second-quarter network applications revenues to be

about $9.4 million to $9.8 million, down from Wall Street expectations of $10.7

million to $13.0 million. It said some customers deferred into the third quarter

license-product installations that had been scheduled for the second quarter.

Revenues in its network solutions group will be in the range of $6.0 million

to $6.3 million, below market estimates of $7.5 million to $8.8 million. It

blamed delays in customer financing for some major international contract that

were signed during the second quarter.

(C) Reuters Limited 2001.