Kana Software Warns

Updated from April 1

Kana Software(KANA Quote) on Thursday became the first software vendor to warn that first-quarter results will come in weak, citing a failure to close several multimillion-dollar deals.

Kana said first-quarter revenue is expected to be about $13 million, down from $18 million a year earlier and short of the $15.5 million consensus estimate gathered by Thomson First Call.

The Menlo Park, Calif.-based customer relationship management software maker expects to post a GAAP net loss of 13 cents to 16 cents a share, compared with a loss of 17 cents a share last year. Analysts were forecasting Kana would post a loss excluding charges of 5 cents a share, but Kana did not offer any comparable pro forma results.

"In this quarter, Kana had several anticipated multimillion-dollar sales which failed to close by March 31," president Tom Doyle said in a press release.

Shares of Kana were recently down 63 cents, or 14%, to $3.87.