Tech Industry

Webvan shares crash on poor earnings

The online grocer's shares close down 16 percent after the company reports its second-quarter losses are greater than they were a year ago.

Unflattering earnings news pulled down shares of some technology stocks today, including those of online grocer Webvan.

At market's close, the company's shares had dipped $1.53 to $7.78, a drop of 16 percent. The stock fell after Webvan released second-quarter earnings. The company's losses are greater than they were a year ago, although its revenue did exceed expectations.

The Foster City, Calif.-based company reported a pro forma net loss of 17 cents a share, or $57.1 million, compared with a loss of $17.4 million, or 7 cents, from a year ago. Wall Street expected the company to lose 16 cents a share, the consensus estimate of 12 analysts surveyed by First Call/Thomson Financial.

Revenue for the quarter totaled $28.3 million, compared with $16.3 million for the previous quarter and $383,000 from a year ago. Merrill Lynch analyst Henry Blodget had expected the company to generate $23.5 million in revenue and maintained his "accumulate/buy" rating on the stock.

Blodget raised his third-quarter revenue estimate from $42 million to $45 million and his full-year forecast from $156 million to $165 million. However, he increased his per-share loss estimate for the year to 73 cents from 72 cents.

Thomas Weisel cut the stock from "buy" to "market perform."

Shares of Extended Systems took a hit after the company announced that it expects to post a loss of 9 cents to 11 cents a share for the fourth quarter because of lower-than-expected sales in Europe. One analyst surveyed by First Call expected the company to lose 1 cent a share.

The Boise, Idaho-based company's shares fell $37.06, or 43 percent, to $50.06.

Extended Systems makes database and network management software, as well as wireless connectivity products and network print servers.

After Paradyne Networks missed analyst expectations, its shares fell $8.88, or 21 percent, to $34.25 today.

The maker of Internet access products reported earnings of 5 cents a share for the second quarter, compared with a loss of 2 cents a year ago. Revenue rose 43 percent to $75.6 million from $52.8 million. Five analysts surveyed by First Call predicted the company would earn 9 cents a share.