Internet tools specialist WebMethods (WEBM) sharply reduced first-quarter guidance Friday, becoming the latest in a slew of technology infrastructure companies to warn results have fallen off recently.
The Fairfax, Va., company expects to report a pro forma loss of 19 cents to 22 cents a share on revenue of $40 million to $41 million in the three months to June 30. Analysts, who generally try to forecast pro forma numbers, expected the company to lose 2 cents a share on revenue of $53.3 million in the period.
"We had an unusual number of seven-figure opportunities in our pipeline that did not close, including one in excess of $5 million," WebMethods said. "Although we did close three million-dollar transactions in the quarter, lower closure rates of these large deals contributed significantly to our shortfall in the June 2004 quarter."
The stock was recently down $2.79, or 34%, to $5.50. The drubbing is similar to one felt yesterday by semiconductor assembly outfit Amkor (AMKR - Get Report), which careened 29% lower after previewing a weak quarter. Lesser declines were felt in software integration company Iona (IONA), and continued Friday in disk-drive maker Maxtor (MXO) and software giant Sybase (SY).