BackWeb Stock Takes a Beating After Q4 Profit Warning
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[Ramat Gan, ISRAEL] BackWeb (BWEB) stock slid an additional 35 percent Friday from previous lows to $2.63 after announcing that morning that it expects fourth quarter revenues of between $7.1-$7.4 million, with a loss between 11-14 cents a share. The stock has been as high as $59.50 in the last year. The company's announcement was contrary to earlier Wall Street predictions, made by research firm First Call/Thomson Financial, which had indicated the company would report fourth-quarter earnings at break-even.
BackWeb chairman Eli Barkat said in a statement that the "recent slowdown in IT-related spending among the Global 2000 companies has impacted the length of our sale cycle, especially for the large-size enterprise solutions we offer." Barkat said he is aware of BackWeb's situation but said he is still confident in the company.
"We believe that critical communication infrastructures will continue to be a priority, and we are confident in our superior technology and competitive positioning in the market," he said.
BackWeb Technologies is a provider of push communications infrastructure for e-business, enabling companies to communicate time-sensitive, business-critical information throughout Internet and wireless networks to customers, partners and employees.
BackWeb is headquartered in San Jose, Calif., and Ramat Gan, Israel.