NEW YORK ( TheStreet) -- Shares of ServiceSource ( SREV) jumped in late trades on Thursday after the company gave a strong outlook for its fiscal third quarter. The San Francisco-based provider of cloud-based service revenue management technology forecast adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) above $2.5 million for the three months ended Sept. 30 with revenue seen exceeding $49 million. For the full year, the company now expects revenue above $195 million, better than its prior projection for revenue ranging from $190 million to $192 million. The current average estimates of analysts polled by Thomson Reuters are revenue of $46.1 million in the September quarter and $191.9 million for the year. The company's prior forecast was for adjusted EBITDA of between $500,000 and $1 million, and revenue of $45 million to $46 million. ServiceSource also said it expects net income and non-GAAP earnings per share to come in above its previous guidance for a net loss of $4.5 million to $5 million and non-GAAP results of between breakeven and a loss of a penny per share. The stock was last quoted at $15, up 12.4%, on volume of more than 100,000, according to Nasdaq.com. Wall Street was bullish on ServiceSource ahead of the news with nine of the 10 analysts covering the stock at either strong buy (3) or buy (6). ServiceSource went public in late March, selling nearly 12 million shares at $10 each. The stock reached a high of $23.60 on June 30.
"Clearly, we are highly disappointed with our revenue for the third quarter," said Jay Flatley, the company's president and CEO, in a statement. "In the quarter, we saw what we believe to be an unprecedented slowdown in purchasing due to uncertainties in research funding and overall economic conditions, as well as a temporary excess of sequencing capacity in the market." Flatley continued: "We expect these conditions to continue through at least the fourth quarter, while the 2012-2013 U.S. budgets for NIH
National Institutes of Health and other related agencies are determined." The stock was last quoted at $31.40, down 21.3%, on volume of more than 300,000, according to Nasdaq.com. The news was weighing on shares of other life science tool makers, including Affymetrix ( AFFX), down 8%; Bruker Corp. ( BRKR), off 9.4%; and Life Technologies ( LIFE), losing 5.7%. -- Written by Michael Baron in New York. >To contact the writer of this article, click here: Michael Baron. >To submit a news tip, send an email to: firstname.lastname@example.org