BackWeb Technologies (Nasdaq:BWEB) today warned that its second-quarter revenues may drop as low as 30% of its first quarter result, which it blamed on slow dealmaking.
The company, which makes software for enterprises, said that second quarter revenue would be between $1.6 million and $1.9 million, compared with $2.3 million in the first quarter of 2002.
The company expects to lose between 11 cents per share to 14 cents, net. The upper limit, 11 cents, is what it had predicted earlier. In the first quarter BackWeb lost 12 cents per share.
The proforma figures exclude amortization charges related to intellectual property, other intangibles and deferred stock compensation, the company said.
In a conference call, company officials said deals had shrunk. Where the average deal used to be $200,000 to $300,000, now deals were $150,000. But the company hopes that business will return to usual toward year-end.
"Our second quarter results were impacted by delays in the closure of a number of deals, resulting from the continued weakness in the general business environment," said Eli Barkat, chairman and CEO of BackWeb Technologies. "The interest ramp and opportunity pipeline for our ProactivePortal Server remains strong, and we expect to close more ProactivePortal Server deals during the second half of fiscal 2002."