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Centra's Loss Widens on Lower Revenue

Centra Software

(CTRA) - Get Contura Energy, Inc. Report

beat first-quarter analyst estimates, but saw its losses widen on a revenue shortfall.

The business software provider said its pro forma net loss for the first quarter was $4.3 million, or 17 cents a share, compared with a loss of $2.8 million, or 12 cents a share, in the year ago quarter. According to Thomson Financial/First Call, analysts had been expecting the company to lose 19 cents a share.

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On a generally accepted accounting principles basis, the company lost $5.9 million, or 23 cents a share, including a $1.2 million loss for costs related to the company's aborted merger attempt with SmartForce.

Revenue for the quarter was about $7.5 million, down from $9.1 million in the year-ago quarter and below the company's previous guidance. Centra blamed the shortfall on lower license sales caused by the "difficult economic environment" and reduced productivity due to division of resources related to the proposed merger.

In a press release, the company said it plans to reduce its workforce by 10%, cut its operating costs, and focus on diversification of its sales in an effort to reverse its widening losses.

Centra also provided new guidance, saying it expects to see a second-quarter pro forma net loss of 14 cents to 15 cents a share on revenue of $8.0 million to $8.3 million, slightly worse than the First Call consensus of a loss of 13 cents a share. The company will also take a $500,000 to $750,000 restructuring charge in the second quarter to account for the workforce reduction.