Put Razorfish (Nasdaq: RAZF) on the growing list of Internet consultants that see disappointing quarterly results.
After market close Thursday, Razorfish said third quarter profit, excluding amortization, would at best reach just half the consensus forecast. First Call's survey of 11 analysts predicted a profit of 8 cents per share.
Razorfish sees third quarter cash earnings ranging between a penny and 4 cents per share, on revenue of $77 million to $78 million.
Shares of Razorfish dropped to 6.025 in afterhours activity on the Island electronic communications network, following the warning. Razorfish stock closed Thursday's regular trading at 8.75, down 1.0625 for the session.
Company executives blamed unexpected European weakness and a strong U.S. dollar for depressing results.
"We are less than pleased with our overall operating results for the quarter,'' Razorfish CEO Jeff Dachis said. "We believe that our footprint in Europe will provide a significant competitive advantage in the long run, however, in the short term it has created certain unanticipated challenges. We are reviewing our management and cost structure and will make the necessary changes to improve profitability."
Some prominent companies tied to the PC field, including Dell (Nasdaq: DELL) and Intel (Nasdaq: INTC), have recently warned of European weakness.
Other Internet consulting firms, including iXL Enterprises (Nasdaq: IIXL), Viant (Nasdaq: VIAN), Xpedior (Nasdaq: XPDR) and Organic (Nasdaq: OGNC), have warned of disappointing results.
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