Shares of Daleen Technologies Inc. (Nasdaq: DALN) plummeted Thursday after the company warned of a steeper-than-expected fourth quarter loss and said it would slash about 27 percent of its workforce.
The e-business infrastructure software company saw its stock fall 36 percent, or 1.53 to 2.66, slightly above its 52-week low of 2.375.
The company said it now expects a fourth quarter loss of between 54 cents and 64 cents a share, excluding acquisition-related and non-cash charges, on revenue of between $9 million and $10 million. The projected loss is far wider than the 31 cent a share loss estimate from First Call.
According to company officials, the shortfall was caused by the slowdown in capital spending in the telecom sector, resulting in delays of key contracts into 2001.
Daleen officials also said the company would eliminate 135 jobs, or about 27 percent of its work force, in a move to cut costs and help turn around sagging performance. The layoffs will be implemented immediately.
The company said further guidance on 2001 financial performance will be provided when final quarterly and year-end results are released on Jan. 31.