Shares of the Active Network Inc. (NYSE: ACTV), one of the biggest websites for registrants in events like marathons and Little Leagues, plunged more 46 percent Friday after the company forecast a fourth-quarter loss.
Shares of the San Diego-based company closed down 42 percent at $5.42, down $3.87, trimming its market value in a single day to only $323 million. Earlier in the session, they touched $5.02, down nearly 46 percent.
After the close Thursday, Active Network reported its third-quarter loss widened to $6.02 million, or 10 cents per share, from $1.43 million, or 3 cents per share, in the same period a year ago. Revenue rose 22 percent to $109.2 million.
But the chill was the forecast of lower fourth-quarter revenue, ranging between $93 million and $97 million, with a net loss from $13 million to $18 million, comtributing to a full-year loss ranging between $42 million and $47 million, only falling in 2013 to a net loss from $31 million to $38 million.
The future losses shouldn't be a surprise. In July, Active Network Executive Chairman Dave Alberga told IBTimes the company didn't expect to report net income for several years as it built up infrastructure and acquisitions to expand its business.
In a statement, Alberga said, “Our team will be laser-focused on product innovation and execution.”
Analysts at Bank of America, Barrington Research, and Northland Capital all downgraded the shares to “underperform” from “market perform.”
David Zielenziger is a veteran editor and journalist who has written for newspapers including the Baltimore Sun, Asian Wall Street Journal and EETimes, as well as for...