Vignette sees Q4 revenues below expectations
(UPDATE: adds CEO quote, details, stock price)
AUSTIN, Texas, Jan 7 (Reuters) - Vignette Corp (NasdaqNM:VIGN - news), maker of software enabling companies to manage the contents of their Web sites, said on Monday it expected fourth-quarter revenues to be far below its previous guidance and Wall Street's consensus.
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It also said its core loss would be larger than anticipated.
Vignette chairman and chief executive Greg Peters said the company's performance suffered from a continued reluctance by large corporations to spend heavily on technology.
The company said it expected fourth-quarter revenues to be between $50 million to $52 million, compared with its previous guidance of $63 million to $72 million.
Vignette also said it expected to post a core loss between $13 million and $16 million, or a loss of four cents to six cents a share.
The company previously said it expected to post a core loss of one cent to three cents a share.
Analysts, on average, expect the company to post a loss of two cents a share on revenues of $67.8 million, according to Thomson Financial/First Call.
Core losses exclude the company's expected non-cash charge related to the impairment of a significant portion of $1 billion in intangible assets.
They also exclude one-time charges for severance, facilities consolidations and equity investment write-down as well as amortisation of deferred stock compensations and intangibles, and purchased in-process research and development.
``Clearly the business environment that we saw in the last quarter continues to be challenging,'' Peters told Reuters.
The average deal size for the 32 customers the company added in the fourth quarter fell to $256,000, down from $300,000 in the previous quarter.
Vignette expected to have ended the fourth quarter with $390 million in cash and cash equivalents, having burned up about $10 million in the quarter.
Peters told Reuters that president and chief operating officer Tom Hogan, once head of sales for Siebel Systems Inc (NasdaqNM:SEBL - news), would take a more active role in overseeing Vignette's sales organisation.
Peters also said he named vice president of North American sales Peter Espinosa as acting senior vice president of worldwide sales and operations to replace Dan Lautenbach, who left the company.
Lautenbach was the former head of sales for International Business Machines Corp (NYSE:IBM - news) software.
``We can always execute better in a difficult environment,'' Peters said.
Vignette shares closed at $5.47 on Friday.
biz.yahoo.com/rf/020107/n07347184_1.html
(UPDATE: adds CEO quote, details, stock price)
AUSTIN, Texas, Jan 7 (Reuters) - Vignette Corp (NasdaqNM:VIGN - news), maker of software enabling companies to manage the contents of their Web sites, said on Monday it expected fourth-quarter revenues to be far below its previous guidance and Wall Street's consensus.
ADVERTISEMENT
It also said its core loss would be larger than anticipated.
Vignette chairman and chief executive Greg Peters said the company's performance suffered from a continued reluctance by large corporations to spend heavily on technology.
The company said it expected fourth-quarter revenues to be between $50 million to $52 million, compared with its previous guidance of $63 million to $72 million.
Vignette also said it expected to post a core loss between $13 million and $16 million, or a loss of four cents to six cents a share.
The company previously said it expected to post a core loss of one cent to three cents a share.
Analysts, on average, expect the company to post a loss of two cents a share on revenues of $67.8 million, according to Thomson Financial/First Call.
Core losses exclude the company's expected non-cash charge related to the impairment of a significant portion of $1 billion in intangible assets.
They also exclude one-time charges for severance, facilities consolidations and equity investment write-down as well as amortisation of deferred stock compensations and intangibles, and purchased in-process research and development.
``Clearly the business environment that we saw in the last quarter continues to be challenging,'' Peters told Reuters.
The average deal size for the 32 customers the company added in the fourth quarter fell to $256,000, down from $300,000 in the previous quarter.
Vignette expected to have ended the fourth quarter with $390 million in cash and cash equivalents, having burned up about $10 million in the quarter.
Peters told Reuters that president and chief operating officer Tom Hogan, once head of sales for Siebel Systems Inc (NasdaqNM:SEBL - news), would take a more active role in overseeing Vignette's sales organisation.
Peters also said he named vice president of North American sales Peter Espinosa as acting senior vice president of worldwide sales and operations to replace Dan Lautenbach, who left the company.
Lautenbach was the former head of sales for International Business Machines Corp (NYSE:IBM - news) software.
``We can always execute better in a difficult environment,'' Peters said.
Vignette shares closed at $5.47 on Friday.
biz.yahoo.com/rf/020107/n07347184_1.html
