Update (4:20 p.m.): Updated with Thursday market close information.
Covisint announced its preliminary fourth-quarter results and said it expects revenue in the range of $24 million to $25.5 million, which is short of the consensus estimate of $27.5 million. The company expects subscription revenue between $17 million and $18 million and services revenue between $7 million and $7.5 million.
The company also announced the appointment of Sam Inman as interim CEO.
"Covisint remains an important growth asset operating in vibrant, dynamic markets; we simply missed on execution in Q4," said Chairman Bob Paul in a statement. "At this important moment, the board has decided to take quick action to improve the company's execution. We're pleased to have someone of Sam's caliber to call on for renewed leadership and focus. He has an extensive technology background-including significant CEO experience-and a proven ability to drive growth. We look forward to working with Sam to drive the next stage of Covisint's growth."
The stock closed down 24.9% to $7.78, down $2.58 from its previous close of $10.36. It had a volume of 1,601,398, more than 10 times its average of 158,543. The stock hit a high of $9.90 for the day and holds a one-year high of $14.80.