Why Datawatch Corporation (DWCH) Is Plummeting on Friday

NEW YORK (TheStreet) -- Datawatch Corporation (DWCH) is tanking on Friday after announcing preliminary second-quarter results below analysts' estimates.

By midmorning, shares had plummeted 30.7% to $14.34.

The data analysis software developer said it expects revenue between $7.8 million and $8 million for its March-ending quarter, less than an average $8.61 million from analysts surveyed by Thomson Reuters.

Chelmsford, Mass.-based Datawatch expects adjusted net losses between $3.1 million and $3.3 million compared to profits of $389,000 in the year-ago quarter.

"We are disappointed in the 14%-17% year over year revenue growth performance in our second fiscal quarter this year, which fell short of our expectations," said CEO Michael A. Morrison in a statement.

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The revenue shortfall was partially due to more than $1.5 million in license revenue being shifted out of the quarter on timing issues related to the closing of several accounts. The company said it has already closed several of the outstanding accounts in the first few days of April, accounting for one-quarter of revenue which shifted out of the second quarter.

"While we are dissatisfied with these preliminary results for the second fiscal quarter, we are confident that the organizational and execution issues have been appropriately addressed," added Morrison.

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