Allaire Corporation (Nasdaq: ALLR), warned Monday that its third quarter 2000 financial results would be below expectations -- the company now expects to lose up to 20 cents a share, a big turn-around from First Call's expected profit of 7 cents a share.
Shares in Allaire, which makes Internet infrastructure software such as ColdFusion, were down 37 percent, or 6.44, to 11.06 Monday.
For the quarter ending Sept. 30, revenue is now expected to be in the range of $28 million to $32 million, compared to $33.3 million in the second quarter of fiscal year 2000 and $15.1 million in the third quarter of fiscal year 1999.
Net loss is expected to be in the range of 5 cents to 20 cents a share, compared to net income of 6 cents a share in the second quarter of fiscal year 2000 and a net loss of a penny a share in the third quarter of fiscal year 1999.
First Call was expecting a profit of 7 cents a share excluding goodwill.
Allaire said seasonal fluctuations resulted in lower than expected channel sales due to seasonal fluctuations, and a broadening of its organizational focus distracted sales and marketing from its ColdFusion products.
"Through the first two months of the quarter, our sales remained on target. Due to the seasonality associated with the third quarter, we anticipated a majority of sales to close during the month of September. However, based on the recent feedback received from the channel and our direct sales force, we are now adjusting our forecasts to reflect lower than anticipated revenues," said CEO David Orfao in a statment.
Longer than anticipated Allaire Spectra sales cycle also contributed to the lowered estimates.
The company said that as it enters the Internet platform marketplace, it remains certain that the multi-product business model is the correct long-term strategy.