Organic (Nasdaq: OGNC) won't meet its profit target in the third quarter.
After market close Wednesday, the Internet consulting and services firm said it saw lower-than-expected revenue growth in the third quarter. The company does not expect to hit its profit goals.
First Call's survey of 4 analysts predicted a profit of 2 cents per share for the quarter ending Sept. 30.
Organic sees third quarter revenue rising about 5 percent from the second, when the company earned $37.2 million.
Company executives blamed overall industry trends for the disappointing results.
"We are optimistic about the future," said Jonathan Nelson, CEO, chairman and co-founder. "Our year-over-year and sequential revenue growth is positive, and we are aggressively managing costs in order to narrow our losses and achieve profitability in the very near future. The industry, in general, seems to be experiencing a temporary lull."
Organic is the latest Internet services firm to warn of disappointing results. iXL and Viant previously told Wall Street to lower expectations.
Shares of Organic rose 9/32 to 5 5/16 in Wednesday's regular trading, prior to the earnings warning.
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