Hot Features
Premium
Register for Free to get streaming real-time quotes, interactive charts, live options flow, and more.
It’s not just the retail sector which has felt the heat owing to global economic slowdown and declining consumer spending. The tech sector is also finding itself in precarious situation as businesses especially in the euro zone grapple with economic stagnation.
On Thursday, Software maker, Informatica Corporation (NASDAQ:INFA) announced that its fiscal second quarter profit will fail to meet Street’s expectations. The Company said it could not rapidly adapt itself with the changing macroeconomic environment, particularly in the Europe.
Informatica, reported that its revised earnings are expected at $0.27-$0.28 per share for the second quarter even as revenues are projected between $188 million and $190 million. Earlier in April, the Company projected the fiscal second quarter earnings at $0.35-$0.37 per share on revenues of $210 million to $220 million.
Reacting over revised earnings guidance, Company’s Chairman and Chief Executive Officer, Sohaib Abbasi said that he was utterly disappointed over Company’s inability to meet its original earnings estimations. The Company posted consistent results for successive 31 quarters, prior to this quarter.
Abbasi also said that the company’s main objective from here on will be to intensify both its efforts and operational efficiency so that it could grow in the second half of 2012 and long term.
Earlier in May, while addressing an industry conference, Informatica had warned of weaker sales in Europe, more particularly in the public sector.
INFA stock is sinking in trading today. At last check, the stock was down more than 28%.
