Viant shares sink after hours on revenue warning
The technology consulting company's stock plummets 26 percent after it warns investors that it expects a revenue shortfall for the third quarter.
Viant could see between 12 percent and 15 percent less revenue in the third quarter than the $38.5 million it generated in the second, the company said in a statement. In addition, Viant said the company anticipates a loss for the third quarter.
Viant's shares closed regular trading down 4 percent to $13.88 and fell to $10.19 in the after-hours session.
The Boston-based company blamed changes in market demand for the shortfall, chief executive Bob Gett said. The ongoing Internet shakeout has limited the amount of money that many dot-coms can spend on consulting services.
Gett said many of its dot-com clients were unable to come up with enough backing to fund projects that Viant was hired for and had banked on.
As a result, Gett said Viant and much of the consulting and services industry has shifted away from catering to dot-coms and is moving more of its attention on larger companies.
But Viant could not change course fast enough, Gett said.
"As a result, we have not had sufficient capacity to capitalize on new client opportunities," Gett said in a statement.
Viant is scheduled to release its third-quarter earnings around Oct. 23.