Transaction Systems Architects, Inc. (Nasdaq: TSAI) plunged 11 11/16 to 13 5/16 Wednesday after reporting weaker-than-expected results for the second quarter ended March 31st.
The e-commerce software maker said revenue fell 13.3 percent from a year earlier to $75.39 million, as pro forma net income dropped to $3.3 million, or 10 cents per fully diluted share from $10.9 million, or 34 cents, in the 1999 quarter. Analysts were looking for earnings of 17 cents, according to First Call/Thompson Financial.
The company restructured its businesses during the quarter to focus on specific markets. Some newer businesses will require “significant” research and development spending over the next few years, the company said, adding that it is seeking capital to develop those businesses.
Transaction Systems said it intends to spin off one division — Insession Technologies — in an initial public offering sometime within the next six months. The timing, however, depends upon market conditions and “other factors,” the company said.