Motive now expects a loss of $0.05 cents to $0.07 cents a share for the three months ending June 30. The total revenue estimate for the second quarter is $22m to $23m, compared to the $22m for the same period last year.
In April, Motive had projected pro-forma earnings of $0.06 cents to $0.07 cents a share on total revenue of $26.3m to $26.8m for the second quarter. Analysts had on average expected the company to earn $0.07 cents a share before exceptional items for the quarter, and the consensus view of revenues was $26.5m.
The company cited lower-than-expected consulting services revenue as a reason for the new estimate. The market took a dim view of the shortfall and in afternoon trading on Nasdaq, shares in the Austin, Texas-based company fell 26% to $8.03.
Although this quarter we added several new customers and renewed and extended relationships with a number of existing customers, we had a significant transaction push out past the end of the quarter and our consulting services revenue fell short of our estimates, said CEO Scott Harmon. While we are disappointed with our expected second-quarter financial results, we do not believe they are indicative of a decline in the need for our management automation software.
Motive will announce its final second-quarter results on July 27.
