CrossKeys to miss 1Q expectations

CrossKeys Systems (Nasdaq: CKEY) will report disappointing first quarter results.

After market close Monday, the Canadian vendor of network management software said it expects to report a fiscal first quarter loss of 14 to 16 cents per share, excluding amortization. CrossKeys sees first quarter revenue of roughly $8.8 million to $9.1 million, under current exchange rates.

First Call has no consensus estimate for CrossKeys' quarter ended Sept. 3. However, CrossKeys said its first quarter results were below analyst estimates.

The companies blamed the disappointment on a failure to close a few large contracts before the quarter ended. Enterprise software vendors usually see the bulk of their contract signings near the end of a quarter.

Preliminary results show CrossKeys' core product revenue grew 110 percent year-over-year.

"We remain confident that our strategy to increase the number of direct sales people as well as widen our channels to market will strengthen our position in the marketplace," said Ian McLaren, president and CEO.

Shares of CrossKeys slid 7/8 to 10 1/8 in Monday's regular trading on the Nasdaq, prior to Monday's announcement.>