Blackboard Forecast Below Wall Street

Blackboard's stock sank $3.47, or 10.1 percent, to $30.74 in aftermarket electronic trading. Earlier, the shares closed down 71 cents, or 2 percent, at $34.21.

Excluding one-time items, Blackboard forecast first-quarter results ranging from profit of a penny per share to a loss of 2 cents per share on revenue between $64 million and $66 million.

Analysts polled by Thomson Financial expect much higher adjusted earnings of 20 cents per share on $64.6 million in revenue.

For the full year, Blackboard anticipates adjusted earnings of 58 cents to 68 cents per share on revenue between $306 million and $314 million. Analysts have forecast adjusted earnings of 96 cents per share on $281.4 million in revenue.

Blackboard said its guidance for the quarter and full year reflect its inclusion of NTI Group Inc., which it acquired effective Jan. 31. The company said its 2008 revenue related to NTI deferred revenue will be about $12 million lower than what NTI would have recognized as an independent company.

When former NTI clients pay annually on their license agreements, Blackboard will recognize revenue for the fair value of these agreements over the term of the renewal, which is generally one year. Blackboard also said its 2008 results will be hurt by about $5 million in merger and integration-related expenses from the NTI acquisition.