Chordiant Software Trims Loss

Chordiant Software (CHRD Quote) shares jumped Tuesday after the company halved its loss in the second quarter, despite lower revenue.

The Cupertino, Calif.-based company posted a GAAP net loss of $1.7 million, or 2 cents a share, compared with a loss of $3.4 million, or 6 cents a share, for the second quarter of 2003. On a non-GAAP basis, the company lost 2 cents a share, vs. a break-even performance a year ago.

Revenue slipped to $16.8 million from $17.1 million a year ago. It was also short of management's expected range of $19.5 million to $21 million. But on the positive side, deferred revenue -- a sign of things to come -- increased $8.3 million, or about a third, to $24.7 million.

Analysts were expecting a net profit of about $900,000, or 1 cent a share, on revenue of $19.3 million.

The company also reaffirmed third-quarter and full-year forecasts. Third-quarter revenue is forecast between $24 million to $25.5 million. Chordiant expects 2004 revenue to be in the range of $80 million to $84 million. The consensus estimates are for $21.9 million and $84 million, respectively.

Shares rose 55 cents, or 22.7%, to $2.97 in premarket trading.