Doubters Question PurchasePro's Results, as Its Stock Price Dives

On Oct. 17 PurchasePro.com(PPRO Quote) crushed analysts' expectations with its third-quarter results, as revenue soared 82% from the previous quarter and its loss per share was a dime less than expected. The company also says it didn't have to spend any cash in the quarter and would become profitable during the fourth quarter, three months earlier than anticipated.

Yet since reporting those results, shares of the Las Vegas-based business-to-business software company have fallen 33%.

PurchasePro's doubters say the decline has come because investors see disturbing issues in the company's third-quarter results. The issues involve a huge jump in the company's accounts receivable, a big drop in its recurring revenue, a $7 million expense the company didn't record and doubts about PurchasePro's claim that it didn't have to spend any cash during the quarter. ...