Look out below for ISS Group, Inc., (Nasdaq: ISSX), an e-business risk management software provider. The stock fell 38 percent Tuesday morning after Goldman Sachs announced it was downgrading the stock from its recommended list to "market outperform."
Sometimes better than good still isn't good enough; the company announced earnings late Monday that squeaked by First Call's estimate of 3 cents a share at $1.6 million, or 4 cents a share.
Shares in the company, which serves as a security provider to more than 35 government agencies, and 21 of the 25 largest U.S. commercial banks were down 11 13/16 to 26 1/2 at mid-morning, well below their 52-week high of 46 1/4.
Revenues of $16.9 million for the second quarter ended June 30, 1999 were a 131 percent increase over the $7.3 million in 1998.
The company's earnings release includes an announcement that income is not fully-taxed due to the existence of net operating loss carried forwards. But the company believes estimates of the company's performance by market analysts are based on fully-taxed earnings. The company's earnings per share would have been 3 cents a share, assuming a tax rate of 35 percent.