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Getty Gets It in the Teeth

The imaging company plans a restructuring.
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Getty Images (GYI) shares continued their plunge after the close Tuesday as the imaging company missed third-quarter revenue estimates and guided lower for the rest of the year.

The Seattle-based company made $38 million, or 62 cents a share, for the quarter ended Sept. 30, compared with the year-ago $39 million, or 60 cents a share. Revenue rose to $198 million from $185 million a year earlier.

Analysts surveyed by Thomson Financial were looking for a 61-cent profit on sales of $206 million.

"Our third quarter results reflect the dynamic changes that are occurring in our industry," said CEO Jonathan Klein. "Today we are announcing a vision which will capitalize on the industry evolution, which is as exciting and as innovative as anything we have done in the past. We will manage aggressively through this transformation, directing resources to areas that provide the most compelling growth opportunities, thereby, setting the foundation for a new stage of growth. Sustained growth will be driven by continuous innovation and a dedication to serve our customers."

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Getty said a "realignment of resources" will result in $9 million of fourth-quarter charges for worker-related costs and office space consolidation.

The company expects to make 56 cents a share for the fourth quarter on sales of $196 million. Analysts were looking for a 66-cent profit on sales of $211 million.

For 2007, the company expects percentage revenue growth in the mid-single digit range and percentage growth in earnings per share of at least one and one-half times the revenue growth rate.

Analysts were looking for 18% earnings growth and 10% revenue growth.

After tumbling 7% during regular trading, Getty slid an added 3% in after-hours action, dropping $1.24 to $44.72.