rocketed up Wednesday after the integration software maker said fiscal second-quarter results will come in stronger than expected.
WebMethods reached as high as $7.50 before recently settling at $7.25, still up 97 cents, or 15.5%, on trading volume that was three times its normal average. The company's second-quarter preannouncement came one day before its analyst day Thursday.
Before the bell, Fairfax, Va.-based webMethods said second-quarter revenue will range from $50 million to $51 million, up from previous guidance of $43 million to $50 million. Analysts were expecting webMethods to post $45.4 million in second-quarter revenue, according to Thomson First Call. The company reported $45.4 million in revenue in the same period last year and $41.8 million in the prior quarter.
Under generally accepted accounting principles, webMethods expects to lose 7 cents to 9 cents a share in the second quarter, which ended Sept. 30. That compared with a net loss of 9 cents a year ago and a net loss of 20 cents a share last quarter. Analysts were expecting a GAAP loss of 15 cents a share.
Excluding charges, the company expects its second-quarter pro forma profit to range from break-even on a per-share basis to 2 cents a share. Previously, the company said it expected a pro forma loss of 2 cents to 13 cents a share. Analysts were expecting webMethods to post a pro forma loss of 9 cents a share in the second quarter.
License sales for the quarter are expected to range from $23 million to $24 million, up from $22 million a year earlier and $14.2 million the previous quarter.
Newly named CEO David Mitchell said the company closed a greater number of large transactions in the September quarter, although no single customer is expected to represent 10% of more of total license sales.