WASHINGTON (dpa-AFX) - Informatica Corp. (INFA) Thursday slashed its second quarter guidance as persistent economic weaknesses in Europe and other parts of the globe led to a decline in demand for its data integration software.
The news had a deleterious impact on Informatica shares which lost the most in a year. The stock is currently down $11.87 or 27.37% on the Nasdaq, in after-hours trade.
Informatica now expects second quarter earnings of $0.16 to $0.17 per share, and adjusted earnings of $0.27 to $0.28 per share.
In April, the company had forecast adjusted earnings of $0.35 to $0.37 per share.
Analysts, based on consensus, currently expect earnings of $0.37 per share for the quarter. Analysts' estimates typically exclude special items.
Informatica's adjusted earnings exclude about $0.11 per share in charges and tax benefits partly related to the amortization of acquired technology and intangible assets.
Informatica has now forecast second quarter revenues of $188 million to $190 million, compared to its earlier outlook of $210 million to $220 million. Analysts currently estimate revenues of $217.15 million.
Commenting on the pruned guidance, Informatica CEO Sohaib Abbasi said, '...I am disappointed that we fell well short of our own expectations in the second quarter of 2012. Clearly, we did not adapt as rapidly as we should have to the changing macroeconomic environment, especially in Europe.'
Abbasi further said, 'Our singular focus now is to redouble our efforts and operational discipline for growth in the second half of 2012 and beyond.'
Informatica also said its Board has approved an additional $100 million in stock buyback, to enhance the existing authorization under its common stock repurchase program.
The company further said that Paul Hoffman, executive vice president and president, Worldwide Field Operations, will retire by the end of 2012.
Redwood City, California-based Informatica is set to release complete results for the second quarter on July 26.
INFA closed Thursday on the Nasdaq at $43.37, up $0.36 or 0.84%, on a volume of 0.7 million shares. In after hours, the stock plunged $11.87 or 27.37% at $31.50. In the past year, the stock has traded in a range of $34.15 - $62.42.
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