Commerce One Inc. hit a 52-week low on Tuesday, closing at US$1.48 in after-hours trading following a revised outlook for first-quarter performance.
In a phone-in press conference with financial analysts, Peter Pervere, CFO at Commerce One, in Pleasanton, Calif., said revenues for the quarter are now expected to be between $29 million and $32 million while operating expenses are projected at $88 to $90 million dollars for the quarter.
Although the operating expenses were revised downward from the original $90 to $95 million forecast, so was the earnings forecast.
Thomson Financial/First Call had projected revenues of about $40.27 million dollars, according to a spokesperson for Commerce One.
The revised outlook for Q1 is due to a continued weakness in IT spending and the extended sales cycles which is now in the range of a four-month to six-month delay in making a purchasing decision, Pervere said.
But the CFO said he was encouraged by the level of interest in the company's Version 5.0 of its applications released in January and by the belief that once the economy rebounds the installed base of more than 500 enterprise-level companies will be ready to expand their Commerce One solutions.