The Sunnyvale, California-based company now predicts that revenue for the second quarter will be in the range of $79m to $81m, compared with its earlier forecast of $82m to $87m. Most disappointing for the company is that license revenue is likely to be approximately $12m, compared with its earlier prediction of a range between $15.5m and $17.5m.
CEO Bob Calderoni said that despite a significant number of opportunities with customers, the rate and pace of closing deals was below expectations.
Ariba believes it is heading for a net loss for the quarter of $8m to $9m, equivalent to $0.13 to $0.15 a share.
The shares slumped 9.33% to $6.51, a new low for a company whose shares have been as high at $17.50 in the past year.
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