Update.com Shares Lose Half Their Value
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[London, ENGLAND] On Europe's Neuer Markt, shares in Austrian software developer Update.com AG slumped Thursday after a report that second quarter sales were lower than expected.
At one point, the shares had lost over half their value, dropping to below $6, the biggest decline since Update.com went public in April this year.
A prominent developer of customer relationship management (CRM) software, Update.com had forecast sales growth of 30-40 percent for the April-June period. However, sales showed no growth whatsoever, resulting in the dramatic markdown of the share price.
Update.com's Chief Executive Gabriele Rittinghaus recently published a statement in the company's annual report promising to "continue to implement our growth strategy."
Some analysts may think that the upbeat message was misleading, as it was in mid-May that Update.com reported the doubling of its first quarter operating loss.
Update.com's shares now stand at a level of over 70 percent lower than their price at their April debut.
The use of customer relationship management in e-businesses is at an all-time high. Earlier this week, late deals site lastminute.com announced technology partnerships to improve its CRM, while most major e-commerce sites now track their visitors and try to suggest alternative deals based on the information gathered.
Update.com blames the lack of growth on a staff shortage in its sales and marketing department and a failure to complete projects on schedule.