Stock Watch: Q2 Warning Sinks Open Market

Open Market, Inc. (Nasdaq: OMKT) fell 3 9/32 to 8 21/32 Thursday after the Burlington, Massachusetts-based e-business software maker said it expects a loss from operations for the second quarter.

Lower revenue from professional services and commerce management software, in addition to an increase in spending, held results back during the quarter, the company said. Open Market said it will report a loss from operations of 13 to 18 cents per share, rather than the 6 cents analysts were expecting.

After a gain from the sale of the company’s investment in SightPath, Inc., net income will total 8 to 13 cents per share. Revenue will be in the $26 to $28 million range, up 44 to 56 percent from the year-earlier quarter, the company said.

“Open Market has experienced a shift, somewhat sooner than expected, toward a higher proportion of its business being derived from licensing of its content management products,” said President and Chief Executive Officer Ron Matros. “Our professional services business model is evolving to accommodate that change.”

Results will be reported July 25th.

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