Breakaway Solutions (Nasdaq: BWAY) fell 2 15/16 to 4 15/16 Thursday after the Internet consulting company said third quarter results will be below analysts’ expectations.
Revenue for the quarter will be “equal to or slightly greater” than the second quarter’s $35.2 million, some 7 percent below the low end of analysts’ forecasts. The loss per share will be between 2 and 4 cents, compared with expectations for a 1 cent loss.
“We’ve seen a change in the market environment that almost every company in our sector is seeing,” said president and chief executive officer Gordon Brooks. In addition to a drop in business from Internet companies, he said, “the reality is that e-service providers are facing brick-and-mortar customers who now demand strong differentiation, and a compelling and sustainable value proposition for their businesses.”
Analysts at several firms, including CIBC World Markets and W.R. Hambrecht, reportedly lowered their ratings on Breakaway after the news.
Internet holding company Internet Capital Group, Inc. (Nasdaq: ICGE), which owns 33 percent of Breakaway, lost 3 5/16 to close at 12 3/8 Thursday.