shares fell more than 13% in after-hours trading Monday after warning of a "temporary negative impact" on fourth-quarter revenue as it transitions to a new marketing system.
China's leading Internet search company said revenue could be impacted as it transitions to its new Phoenix Nest online advertising system and phases out an older system.
It expects fourth-quarter revenue of 1.19 billion yuan ($174 million) to 1.23 billion yuan ($180 million), which is year-over-year growth of 32% to 36%. Analysts surveyed by Thomson Reuters were estimating fourth-quarter revenue of $204.7 million.
reports Baidu's CEO Robin Li as saying the negative impact from the transition to its new keyword bidding system could extend into the first quarter of 2010.
Baidu Monday reported third-quarter net income rose 42% to 492.9 million yuan ($72.2 million) as revenue rose 39.1% to 1.3 billion yuan ($187.3 million).
Baidu has about 60% of China's search market, compared with less than 30% for
, according to Analysys International, a Beijing research firm.
In after-hours trading Monday, Baidu shares fell 13.2%, or $56.98, to $375.99.
-- Reported by Joseph Woelfel in New York
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