Software maker Marimba Inc. in Mountain View, Calif., said it expects revenue for the third quarter ended Sept. 30 to be in the range of US$10 million to $10.2 million, with a net loss of 13 cents to 17 cents per share.
Analysts surveyed by First Call/Thomson Financial had predicted earnings of four cents a share.
The company blamed the loss on several deals it wasn't able to close. However, in a statement, Marimba said it plans to complete some of those deals in the fourth quarter, ending Dec. 31, 2000.
"While we are disappointed with our expected results and therefore cautionary in our near-term outlook, we remain confident in the growth of the Internet infrastructure market and in the strength of our long-term business," John Olsen, Marimba's president and CEO, said in the statement.
Marimba, which makes software that allows companies to deliver and manage applications over the Internet, made its announcement after the close of regular trading on the Nasdaq Stock Market. At 4 p.m. yesterday, its shares closed down 69 cents to $11.13. In trading this morning, the stock fell to $5 per share. In March, the stock traded as high as $68.88 per share. The company went public last year.
Paul Mason, an analyst at International Data Corp. in Framingham, Mass., said Marimba has been losing money consistently.
"They're still in startup mode," he said. "But they basically have a good product. The problem is that they're still dependent on large deals -- they have no built-up business, so if they [can't close a deal], that's what happens. It's tricky when you're a start-up."
Thursday Marimba also said Bob Maynard, its vice president of worldwide sales, resigned to pursue other interests. And in July, co-founder Kim Polese stepped down as CEO and was replaced by Olsen. Olsen has also taken over the role of acting vice president of worldwide sales.