Agilysys shares plunge on revised 4th quarter outlook because of weak sales of Sun products

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Agilysys cuts 4Q outlook on weak Sun product sales

CLEVELAND — Information technology services company Agilysys Inc. cut its fourth-quarter sales forecast on Monday, saying it expects sales to fall as much as 19 percent compared with last year.

The company said sales of Sun Microsystems products decreased because Sun shifted its strategy after being sold to Oracle Corp. That hurt sales in Agilysys’s technology services business.

In morning trading its stock dropped $2.36, or 21.8 percent, to $8.49.

Agilysys now expects to report $130 million to $140 million in revenue for the quarter ended March 31. That’s down from $155 million in the fourth quarter of fiscal 2009. Previously the company said it thought demand would be similar to fourth-quarter levels.

Agilysys said it will report fiscal fourth-quarter results in early June.