MTI Technology Expects Earnings to Miss Target

MTI Technology Corp. warned Wednesday that first-quarter results will fall below analysts’ estimates because of reduced business from Internet companies.

The Anaheim provider of high-performance data storage software and services also said it is reducing its focus on generating dot-com business.

MTI is the second Orange County software company this week to report lagging business from dot-coms. On Monday, Continuus Software said its second-quarter operating losses would be more than triple what analysts had expected.

Irvine-based Continuus, which makes software that tracks changes to computer networks and Web sites, said licensing deals are smaller, and it’s taking longer to close them, partly because Internet companies have been forced to cut costs.

Sounding a similar alarm, MTI said it expects to post a quarterly pretax loss of $9 million to $12 million. Analysts had estimated earnings of 2 cents a share for the three months. A year ago, the company earned $3.5 million, or 12 cents a share.

The company said it expects revenue of $35 million to $38 million for the first quarter ended July 1, down from $53.2 million a year ago.

In addition to a decline in Internet business, MTI said its European revenue fell.

MTI’s stock slumped to a new 52-week low Wednesday before rebounding later in the session.

The shares, which lost 21.4% on Tuesday, fell to $5.25, a 52-week low, early Wednesday before rallying to close at $5.91, up 41 cents, in Nasdaq trading.