Smith-Gardner & Associates, Inc. (Nasdaq: SGAI) fell 2 11/32 to 4 29/32 Friday after the Delray Beach, Florida-based e-commerce software maker warned of lower revenue and a net loss for the second quarter ending June 30th.
The company said it expects revenue for the quarter to total $9 to $11 million — down from $12.3 million in last year’s second quarter — resulting in a net loss of 13 to 16 cents per share. In the year-earlier quarter, Smith-Gardner earned 12 cents per share.
The company said on May 25th that earnings would be reduced by about five cents per share because of an increase in an accounts-receivable reserve for a client that was experiencing cash-flow problems. Smith-Gardner also said that a number of customers delayed purchases from the second quarter to the third, and a shift in business from startup “dot-coms” to established companies with longer purchasing cycles is leading to slower sales.
“We remain optimistic about our future market opportunities,” said Chairman, President and Chief Executive Officer Gary G. Hegna.