Canada's Constellation Software Inc said it is not able to accurately forecast future revenue and related operating profits of Trapeze ITS, its Switzerland-based unit providing software for public transit companies.
The company said it was indicated at a press conference in Switzerland on Nov. 25 that revenue at Trapeze ITS would fall to 60 million euros from 100 million euros in the year following the acquisition of the public transit solutions business of Continental Automotive AG.
Due to the uncertainty surrounding the acquired contracts and associated revenue recognition, Trapeze ITS' revenue and operating profits are not predictable, the software and service provider said in a statement.
Constellation had said on Nov. 25 that it will cut 110 jobs at Trapeze ITS unit by June 2010, primarily at its main office in Neuhausen, Switzerland.
Shares of Constellation were up 20 Canadian cents at C$34.85 in morning trade Friday on the Toronto Stock Exchange.
(Reporting by Amit Kumar in Bangalore; Editing by Gopakumar Warrier)