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Thursday, January 21, 1999 < Prev Next >

Downgrade Hits Visio; Shares Fall

SEATTLE - Visio shares were down 33 percent today after an analyst reduced his rating on the company's stock following the company's report of a 36 percent profit gain in its first quarter.

Although the profit met Wall Street estimates, a Merrill Lynch analyst downgraded the stock to near-term "neutral" from "accumulate." Visio shares closed down $13.063 to $26.813.

Visio, which develops drawing and diagramming software for business customers, announced a $10 million profit, or 32 cents a share on a diluted basis, for the quarter ending Dec. 31. The first-quarter results show a 36 percent increase over Visio's $7.4 million profit, or 24 cents a diluted share, for the same period a year ago.

Seattle-based Visio also reported its 15th consecutive quarter of sales growth, ringing up revenue of $48.2 million, an increase of 29 percent over 1998 first quarter sales of $37.5 million. The release of its Visio Enterprise product in November helped drive sales up, comprising more than half the quarter's revenue, the company said.

The Seattle Times

Source page: http://community.seattletimes.nwsource.com/archive/?date=19990121&slug=2939890