Open Market, Inc. (Nasdaq: OMKT) tumbled 28 percent Thursday after it warned second quarter results would miss estimates due to lower revenues in its services business.
Shares were down 3 3/8 to 8 9/16, well below their 52-week high of 65 1/2.
Net revenue for the second quarter is expected to be between $26 million and $28 million. The company will report a previously announced gain of about $12.1 million, net of income taxes, or 25 cents a share, from its investment in SightPath, Inc, which was sold to Cisco Systems, Inc. (Nasdaq: CSCO) in May.
Excluding the gain from the SightPath sale, Open Market expects to report a net loss between 13 and 18 cents a share, well below First Call's expected loss of 6 cents a share. With the gain, the company will report earnings between 8 and 13 cents a share.
Open Market said it expects to experience a shortfall in revenue from its professional services business and the licensing of its commerce management products.
The company said this shortfall, along with an increase in spending, accounts for the anticipated higher than expected loss.
Open Market has experienced a sooner than expected shift toward the licensing of its content management products, the company added. It will release final financial results for its second quarter on July 25.
The company's competitors include Broadvision (Nasdaq: BVSN) and Vignette (Nasdaq: VIGN) according to Hoover's Online.