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Jones Soda Loses Fizz

Shares tumble as the company's earnings miss views.
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Jones Soda

(JSDA)

shares lost some of their pop late Thursday after the beverage maker's first-quarter results came in below expectations.

The stock was tumbling $3.16, or 12.5%, to $22.05 in late trading.

The Seattle-based company's net income climbed to $59,312 from $2,500, while earnings per share were flat at less than 1 cent. Analysts polled by Thomson Financial projected earnings of 3 cents a share.

Revenue rose to $9.2 million from $8.8 million, missing Wall Street's expectation of $13.2 million.

The company said that while gross margins improved, its results were hurt by additional investments in its infrastructure, sales staff and increased compliance stocks.

Jones shares have nearly doubled since the beginning of the year as investors grew excited about a new distribution agreement that will expand its products to

Wal-Mart

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and

Safeway

(SWY)

, as well as a plan to sweeten its soda with pure cane sugar rather than the high-fructose corn syrup used by

Coca-Cola

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and

Pepsi

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.