Group 1 Warns, Shares Tumble

The software maker blames a recent acquisition for lower top and bottom-line results.
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Updated from Jan. 15

Group 1 Software

(GSOF)

shares spiraled down in after-hours trading Thursday after the company preannounced disappointing fiscal third-quarter results, citing a recent acquisition.

At about 9:50 a.m. EST Friday, shares of Group 1, which makes direct marketing and customer management software, were down $1.32, or 7.6%, at $16.01.

Group 1 said it now expects third-quarter revenue of about $30.6 million, short of the consensus estimate of $35.1 million gathered by Thomson First Call.

Net income for the quarter, excluding one-time charges related to the acquisition of assets of

Sagent Technology

(SGNT)

during the quarter, will be approximately $1.0 million to $1.3 million, with earnings per share of 6 cents to 8 cents a share, the company said. Analysts were expecting 16 cents a share.

The decline in earnings was attributable to dilution from Sagent operations in the quarter, Group 1 said.,