FileNet Stock Tumbles 37% on Lower Than Expected Earnings
COSTA MESA — FileNet Corp.’s stock price plunged 37% Monday after the manufacturer of computerized document-processing systems said its second-quarter earnings will be lower than expected.
The stock fell as low as $10.50 a share Monday in heavy trading among NASDAQ issues but recovered to close at $12.25, down $7.25. On Thursday, the last trading day before the long July 4 weekend, it closed at $19.50, off $3.75.
The company said earnings for its second fiscal quarter, which ended Sunday, will be about $600,000, or 5 cents a share. That compares to a profit of $2.2 million, or 20 cents a share, for the corresponding period last year.
Revenue for the second quarter is projected to be $34.5 million, the company said, up 20% from $28.8 million a year earlier but below some analysts’ estimates. James Reynolds, an analyst at Wedbush Morgan Securities in Los Angeles, said he had forecast revenue of about $38 million for the quarter.
Ted Smith, chief executive, said that financial and economic concerns in the United States continue to hamper revenue growth.
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