Software maker S1 to cut jobs, warns on earnings

<p>Financial-services software maker S1 Corp. on Monday said it will cut 8 percent of its staff, or about 140 jobs, and consolidate some of its operations to save money.</p><p>It also warned that third-quarter profit will fail to match Wall Street's expectations.</p><p>The realignment is expected to reduce annual operating expenses by $20 million to $22 million by the end of the year, Atlanta-based S1 said.</p><p>The news sent shares of S1 fell 25 cents, or 5.8 percent, to close at $4.03 on the Nasdaq Stock Market.</p><p>Earlier, the stock fell as far as $3.51, eclipsing the 52-week low of $3.71, set Sept. 21.</p><p>S1's software is used to automate branch and call-center transaction services.</p><p>The company, which employs 1,700 people worldwide, blamed weakness in its financial institutions segment for an expected third-quarter loss of 9 cents to 10 cents a share, including about $3.5 million in nonrecurring charges.</p><p>In early August, when it had replaced its chief executive, the company projected third-quarter results would range from a loss of 3 cents a share to a profit of 1 cent a share.</p><p>The average estimate of analysts polled by Thomson Financial is for a third-quarter loss of 1 cent a share.</p><p>"The issue is that the company does not have an enterprise-class product to sell," Bert Hochfeld of Hochfeld Independent Research Group said.</p><p>"They don't have their flagship product available so they're not doing any business. Essentially it's been delayed and delayed."</p><p>For the third quarter, S1 expects to report revenue for the financial institutions business of between $47 million and $48 million. The company had earlier expected revenue from that business in a range of $53 million and $55 million.</p>

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