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| Monday, October 16, 2006 |
Shares of SumTotal Sink After Company Announces Expectations of 3rd-Quarter Loss
Shares of SumTotal Systems Inc., a software maker focusing on learning and business performance, plunged Monday after the company cut its guidance and said it expects to post a loss for the third-quarter.
In morning trading, SumTotal shares were down $1.03, or 13.7 percent, to $6.45 on the Nasdaq, after dropping as low as $5.91 earlier in the day. Over the past year, SumTotal shares have traded between $3.96 and $7.77.
SumTotal said it expects to post a loss of $2.6 million to $2.8 million, or 10 or 11 cents per share, on revenue of $26.8 million to $27 million.
Adjusted for non-cash accounting adjustments and one-time charges, SumTotal expects to post a profit of $900,000 to $1.1 million, or 3 cents to 4 cents per share, on revenue of $27.3 million to $27.5 million.
Analysts polled by Thomson Financial expect a profit of 9 cents per share, excluding $2.2 million in amortization of intangibles and $1.2 million in stock-based compensation, on $26.9 million in revenue.
The company had said in August it expected to post a loss of $900,000 to $1.9 million, or 4 to 8 cents per share, on revenue of $25.5 million to $27.5 million. On an adjusted basis, it called for a profit of $2 million to $3 million, or 8 cents to 12 cents per share, on $26 million to $28 million in revenue.
Company officials blamed higher than expected costs, mainly in its services business, for the loss. |
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