Shares of InterWorld take a beating
Shares of the e-business software maker tumble almost 60 percent after the company says it will report a wider-than-expected loss for the third quarter.
At the close of the regular trading session, InterWorld's stock was down $5.47 to $3.69 on the Nasdaq. The company, which has seen a 52-week high of $93.50, said it expects to lose between 35 cents and 43 cents per share. Analysts polled by First Call/Thomson Financial expected the company to post a loss of 18 cents for the quarter.
InterWorld, based in New York, also said it expects its revenues for the third quarter ending Sept. 30 to be in the range of $14 million to $18 million.
"After eight consecutive quarters of sequential revenue growth, we are now experiencing the effects of longer sales cycles in our deals concurrent with softness in the B2C (business to consumer) sector," Jeremy Davis, chief executive of InterWorld, said in a statement.
InterWorld went public last year and competes with e-commerce software companies BroadVision and Blue Martini. The company sells software that helps online merchants automate sales, inventory, shipping and customer service on the Internet.
The company plans to announce third-quarter results the week of Oct. 23.