Art Technology Group, Inc. (Nasdaq: ARTG) plunged 18 7/8 to 65 11/16 Friday despite stronger-than-expected results for the third quarter, as the company announced plans to sell additional shares.
Art Technology, which makes e-commerce and online customer management software, said revenue soared in the quarter, rising to $46.3 million from $8.1 million in the 1999 third quarter. Products accounted for 74 percent of total revenue, with services making up the other 26 percent, the company said.
The company posted net income of $5 million, or 7 cents per share, compared with a loss of $5.3 million, or 10 cents, a year earlier. Analysts had expected the company to earn 5 cents per share in the latest quarter.
Also on Friday, Art Technology said it filed with the U.S. Securities and Exchange Commission to sell 4.725 million newly issued common shares. The company did not give say when it would sell the shares or say how it might use the proceeds.
“Much of our recent growth can be attributed to our increased marketing and sales presence worldwide, and our rapidly improving brand recognition,” said chief executive officer Jeet Singh.
Art Technology said it added 54 partners during the quarter, bringing the total to a record 232. PricewaterhouseCoopers, Andersen Consulting, Modem Media, EDS, E-Tree, Sapient, Organic, Materna, and Inventa are among partners that “generated a significant amount of revenue” during the period, the company said.
The number of customers also grew during the quarter, with 182 companies taking delivery of Art Technology products during the quarter. The company said its total customer base rose to more than 530, with new customers including Adobe Systems, Bank of Ireland, KnightRidder.com and Loudcloud.
The company, Singh said, will continue to invest in expansion, including product development, technology partnerships and possible acquisitions.