RealTime IT News

InterWorld Weighs in with Poor Fiscal Fitness

InterWorld™ Corp. Friday joined the rank in file of dot-coms announcing lower-than-expected financial results for the third quarter this year.

The e-commerce software provider said its revenues for the third quarter ending next week will fall somewhere between $14 million to $18.million. The loss per share is expected to be in the range of $0.43 to $0.35.

"After eight consecutive quarters of sequential revenue growth, we are now experiencing the effects of longer sales cycles in our deals concurrent with softness in the B2C sector," said Jeremy Davis, president and chief executive officer of InterWorld. "However, we remain optimistic about the strong demand for sell-side B2B e-commerce software solutions, which we expect to meet with our new B2B e-commerce solution, Commerce Exchange Business Suite 4.0."

Indeed, InterWorld had hoped to have a much better week after releasing that new suite -- billed as its next generation B2B application Monday. The enhanced B2B solution was geared to provide firms excellent automation, collaboration and connectivity across the entire selling chain to increase efficiency, productivity and profits.

But Davis echoes the sentiments of many dot-coms, such as advertising firm ValueClick Inc. as well as chip superpower Intel Corp.

Intel was the first doomsayer, having announced its fiscal situation Thursday afternoon. Attributing its shortcomings to "weak European demand," the giant's shares 21 percent in after-hours trade on Thursday, dragging down the shares of fellow chip-making firms and triggering a sell-off of a host of technology stocks.

Intel expects third quarter sales to be up only 3 percent to 5 percent from the second quarter's $8.3 billion.

ON24 stock nalayst Trevor Jackson said the largest chip manufacturer's fall should not cause a panic and that selling is not the best course until investors see Intel's fourth quarter forecast. Essentially, he said this would hurt the hardware market because Intel is getting competition from the open source movement and portable device sector.

ValueClick, too, is hurting. The firm said it plans to buy back $10 million of its stock due to lower-than-expected third quarter revenue estimates. Citing a slowdown in online advertising spending, ValueClick predicted that third-quarter revenues would range between $9.5 million and $10 million, down from the $12.5 million to $13 million range it forecast at the end of last quarter.