Allaire Corp. (Nasdaq: ALLR) plunged 7 1/16 to 10 7/16 Monday after the company, which provides Internet software and services, said it expects a third quarter loss.
Allaire said revenue for the quarter will total between $20 and $32 million, down from $33.3 million in the second quarter, but above $15.1 million in last year’s third quarter. The company had predicted a net loss of 5 to 20 cents per share, compared with a loss of a penny per share a year ago.
The company blamed the lower results on costs associated with expanding its product offerings, and lower-than-expected sales of some products.
“As we enter the Internet platform marketplace, Allaire has transitioned a number of areas of its business to support an enhanced multi-product business model,” said President and Chief Executive Officer David Orfao. “We remain certain that this multi-product business model is the correct long-term strategy.”