Investors subtracted 18% from SumTotal (SUMT) Monday after the software company warned that it expects to post a third-quarter loss.
The Mountain View, Calif., talent and learning solutions company said it expects to lose 10 or 11 cents a share for the quarter ended Sept. 30 on revenue of $26.8 million to $27 million. The company expects its so-called non-GAAP profit, excluding certain items, to be 3 to 4 cents a share.
Analysts surveyed by Thomson Financial were looking for a 9-cent profit on sales of $26.9 million.
We are pleased with the revenue which is a record for any quarter in our history and continues our success -- both in winning new business and in selling incremental solutions into our installed base. However, we are disappointed with the net income, which is estimated to be below our prior expectations. This results from higher than expected costs, predominantly in our services business. We are implementing actions to correct the situation and will discuss these in our quarterly conference call," SumTotal said.
Shares fell $1.42 to $6.06.