BackWeb sees weak quarter ahead

Jan. 2, 2002 4:43 p.m. PT

The slowdown in information technology (IT) spending claimed another victim Friday, as push software provider BackWeb (Nasdaq: BWEB) said it will miss fourth quarter estimates.

Shares in the company closed off yesterday's session down 25 percent, or 1.34 to 4.03. 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 $7.1 million to $7.4 million range. 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 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.