CyberCash Inc.(CYCH) shares tanked 17 percent Thursday morning after it warned its second-quarter loss will be 53 cents to 56 cents a share, well beneath the expected loss of 38 cents a share predicted by First Call.
Shares were down 2 3/16 to 10 9/16, below their 52-week high of 24 7/8.
The provider of electronic-payment services blamed a less than enthusiastic response to its new payment product for the losses. Revenues from its InstaBuy service, which allows a shopper to enter their credit card number once and then click on products and purchase goods anytime after that, didn't take off during the second quarter, according to a company representative. The company does expects revenue from the product to pick up in the second half of the year.
Cybercash recently announced a deal with Internet advertising company NetGravity that will allow shoppers to buy products directly from Internet advertisements instead of going to the merchant's Web site.
Reuters contributed to this report.