Software Toolworks Stock Falls
Wall Street’s apparent fear of poor second-quarter earnings by Software Toolworks Inc., which makes software for the Nintendo home video system and personal computers, resulted in a sharp drop in the Chatsworth’s company’s stock in heavy trading.
On Monday, the stock closed at $15.75 a share Monday, down 25 cents, in the over-the-counter market after tumbling $2.875 a share Friday on trading of 2.4 million shares.
The drop followed a Software Toolworks filing Thursday with the Securities and Exchange Commission that showed the company had net income of $5,000 on revenue of $2.74 million in the 30 days that ended April 30. In the second quarter of 1989, the company earned $849,000.
The company said it made the filing to satisfy accounting requirements related to its March acquisition of another software company, Mindscape Inc. But Software Toolworks cautioned that the April results “should not be relied upon by investors as indicative of results” for the full second quarter.
The stock already had plummeted early last week after a story in Barron’s, a financial magazine, that raised doubts about bullish sales forecasts for Software Toolworks that, until last week, had pushed its stock sharply higher to about $24 a share.
