Informatica Shares Dive after Warning

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By Paul Ausick Published
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Shares in Informatica Corp. (NASDAQ: INFA) lost -25% after the market closed last night after the company announced that it would not meet previous second quarter revenue or EPS forecasts. The software maker lowered its EPS projection to $0.27-$0.28, well below the consensus estimate of $0.36. The company also lowered its revenue forecast to a range of $188-$190 million, substantially below the consensus estimate of $217.3 million.

Informatica’s CEO, Sohaid Abbasi, said the problem was in Europe:

Clearly, we did not adapt as rapidly as we should have to the changing macroeconomic environment, especially in Europe.

Europe’s corporate buyers are keeping a tight rein on spending as storm clouds continue to gather over the Eurozone’s financial crisis.

Abbasi also noted that he believes Informatica will get this business later this year. The company reports second quarter results on July 26th.

Shares are down nearly -28% in the pre-market this morning, at $31.32, which would be a new 52-week low if it holds up. The current 52-week range is $34.15-$62.42.

Paul Ausick

Photo of Paul Ausick
About the Author Paul Ausick →

Paul Ausick has been writing for a673b.bigscoots-temp.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.

He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.

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