Research Engineers Stock Declines 46%

Research Engineers Inc. stock fell 46% after the software developer said it expects earnings for the third and fourth fiscal quarters to fall below analysts’ expectations.

The company’s stock slumped $2.81 per share, to $3.31, as 497,300 shares changed hands, more than 11 times the three-month daily average on the Nasdaq market.

The company didn’t offer estimates for the third and fourth quarters, but said it expects earnings of 15 cents to 20 cents a share for the fiscal year ending next March 31, instead of the current analysts’ estimates of 36 cents to 43 cents.

“We attribute this slower growth to a longer buying cycle for some of the company’s new products,” said Amrit Das, president and chief executive.

The company said it expects revenue to grow by about 40% to 50% over the previous fiscal year.

In the year ended March 31, 1996, Research Engineers had net income of $716,000 on sales of $7.3 million, but per-share figures were unavailable as the company didn’t go public until four months later.