Analysts believe the tax software crisis has begun to filter through to MYOB's share price, as the one-time market darling closed at a record low of 38c yesterday.

MYOB issued a statement yesterday that detailed why many of the company's tax-agent customers have experienced "substantial difficulties" with their software and outlined what measures the company had taken to address these problems.

In a conference call yesterday, MYOB's chief executive, Mr Craig Winkler, said the statement was not related to the company's falling share price. He said the objective was to address a "lot of misinformation".

Earlier this week such concerns had caused MYOB to challenge a rival software supplier which, in a leaked memo, had made some unfavourable comments regarding the MYOB software. The comments have since been retracted.

MYOB is due to report on September 3, and some analysts believe part of the decline in its shares can be attributed to uneasiness regarding its annual accounts. MYOB's shares, which traded as high as $4.50 in May 2000, have lost one-third of their value in the past two months. The software crisis is also viewed as a contributing factor.

"This is not the kind of thing we expect from MYOB. The company's software developers have always been thought to be very good," one analyst said. Mr Winkler said he did not believe the tax software problems would cause the company lasting damage.

"We do have a good reputation and we intend to maintain that, but we are not alone here. It is not like MYOB has gone out and done terrible things; it is the environment we are working in," he said. "We have 300,000 customers and only 4,000 tax accountants … We think the impact should be containable.

There may well be some customers who will leave us as a result but I think most realise this has been a glitch - a very painful glitch, but a glitch nevertheless." H&R Block has already swapped over to a rival tax package.

A Melbourne-based public tax accountant said many MYOB tax software users were still frustrated by what they viewed as the company's poor support. "I don't think anything has changed," said the accountant, who did not wish to be named.

"Communication is still a problem and support is still a problem. I think MYOB has lost the confidence of many of their customers."