DemandTec Shares Fall After Wider 2Q Loss, Outlook

NEW YORK (AP) — Shares of price-management software company DemandTec Inc. fell Friday after the company said its fiscal 2010 second-quarter loss widened on higher costs, and it narrowed its revenue guidance.

DemandTec's software helps retailers decide how to price and market their wares.

The stock shed 56 cents, or 6.3 percent, to hit $8.27 in afternoon trading. Shares have traded between $5.77 and $10 over the past 52 weeks.

Late Thursday, the San Carlos, Calif., company posted a net loss of $3.1 million, or 11 cents per share, compared with a loss of $1.6 million, or 6 cents per share, a year earlier. Revenue rose 6 percent to $19.8 million from $18.6 million.

Excluding stock-based compensation and other costs, the company said it earned 2 cents per share. Analysts polled by Thomson Reuters expected profit of 2 cents per share on revenue of $19.6 million.

JMP Securities analyst Patrick Walravens reaffirmed a "Market Outperform" rating and $11 price target on the stock, citing the second-quarter results matching Wall Street expectations.