Wonderware Stock Takes a Hit on Word of Second-Quarter Loss

IRVINE —  Wonderware Corp. stock dropped as much as 26% after the company reported a second-quarter loss on weaker-than-expected sales of factory automation software and higher costs from business expansion.

Although Wonderware had warned investors about its loss two weeks ago, its stock fell $3 to close at $8.50 in Nasdaq trading. Wonderware’s stock was trading above $42 per share exactly one year ago.

The software company also said yesterday that it fired two managers in Cupertino and filed lawsuits against them alleging breach of contract and other charges. Sources said the managers, founders of a software company Wonderware acquired last year, had been blamed for delays in the release of Wonderware’s latest product, InTrack. Details weren’t immediately available.

For the second quarter, the company said it lost $1.2 million, or 9 cents a share, contrasted with year-earlier profit of $2.8 million, or 21 cents a share. Revenue was up 16%, to $14.9 million from $12.8 million. First-half net income totaled $264,549, or 2 cents a share, compared with $5.4 million, or 40 cents a share, for the 1995 first half. Revenue increased 25% to $30.8 million from $24.6 million.