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Technology / AI and automation

WebMethods sees red in Q2, probes accounting

The Fairfax, Virginia-based company expects to post a net loss of between 6 cents to 8 cents a share for the quarter. It had previously guided at earnings of 2 to 7 cents a share. The loss factors in amortization and income tax expenses totaling over $1m and stock-based compensation of $3m.

The company also lowered its revenue outlook to $48.5m to $50m, citing a disappointing year-over-year decline in license revenue which it expects to fall in the range of $15.5m to 16.5m.

It had previously forecast overall revenue of $53.5m to $56.5m for the quarter. Analysts had expected a profit of 4 cents a share on revenue of $54.5m.

David Mitchell, CEO of WebMethods, made no bones about calling the quarter a clear disappointment, pointing to weaker-than-expected license revenue.

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He said the company is also evaluating its internal accounting practices in relation to its acquisitions of Cerebra and Infravio during the quarter. Shares of WebMethods were halted following the announcement.

It has been a rough ride for WebMethods so far this year. In July, the company saw its stock nosedive 30% after it warned of a first quarter loss – its first in over a year.

Shares of WebMethods were changing hands at $6.50 in the Nasdaq after-hours session, down 13% from Thursday’s closing price of $7.48. Over the past year, WebMethods’ stock has traded between $6.06 and $10.18.

This article is from the CBROnline archive: some formatting and images may not be present.

CBR Staff Writer

CBR Online legacy content.