Shares of RadView Software (Nasdaq: RDVW) slumped Wednesday after the company missed estimates for its fourth quarter due to softening sales in the technology sector.
The software testing company, which made its public debut in August priced at $10, saw its shares drop 0.47 to 2.63.
For the quarter, the company reported a loss of 24 cents a share, excluding stock-based compensation, wider than the First Call forecast of a loss of 18 cents a share. The result was also greater than the 19 cent a share loss reported in the same quarter last year.
Based on preliminary data, the company said it expects fourth quarter revenue to be between $2.7 million and $3.1 million, compared to the $3.1 million reported in previous quarter.
The company said that it has about $34 million in cash, which it said would keep the company going until it reaches positive cash flow, anticipated by the end of 2001.
In a release, CEO Ilan Kinreich said that the company was impacted by the slowdown in the software sector spending, particularly through a lengthened sales cycle and delayed purchasing decisions by customers.