BackWeb foresees a weak fourth quarter
The slowdown in information technology spending claims another victim, as the push software provider says it will miss fourth-quarter estimates.
Shares in the company were down 72 cents, or nearly 18 percent, to $3.31 in early trading Friday, after closing Thursday's session down 25 percent. The stock has fallen sharply from its 52-week high of $59.13.
The company now expects to post a loss of between 11 cents and 14 cents a share, on revenue in the range of $7.1 million to $7.4 million. First Call analyst estimates had called for pro forma break-even results for the period.
According to BackWeb CEO Eli Barkat, slumping global IT spending impacted the Israeli company's results and lengthened sales cycles.
"Although we are disappointed in our revenues for the fourth quarter, we believe our revised expectations for the quarter do not reflect any order cancellations or losses to competition," he added.