LivePerson dives on weak 1Q results, outlook for 2Q and year

Shares of LivePerson Inc. plunged Friday after the provider of technology for online customer support reported worse first-quarter results than analysts expected.

Guidance for the second-quarter and full year missed Wall Street estimates, too.

LivePerson shares lost 58 cents, or 16.9 percent, to $2.86 in midday trading, near their 52-week low of $2.78 set in March.

Late Thursday, the New York-based company reported a loss of $212,000, compared with a profit of $918,000 in the year-ago period. On a per-share basis, LivePerson broke even in the latest quarter and posted a profit of 2 cents in the 2007 quarter.

Excluding certain items, LivePerson posted adjusted income of $1.4 million, or 3 cents per share, down from $2.1 million, or 5 cents per share, in the year-ago quarter.

The 2007 quarter included a tax benefit of $1.7 million.

Revenue rose to $17.1 million from $11 million, due in part to the company's acquisition of Kasamba Inc. in October. Excluding the purchase, LivePerson recorded first-quarter revenue of $14.4 million.

Analysts polled by Thomson Financial expected adjusted income of 4 cents per share on revenue of $17.5 million.

For the second quarter, LivePerson forecast adjusted net income of 3 cents per share on revenue of $17.9 million to $18.4 million. Analysts project income of 5 cents per share on $18.8 million in revenue.

LivePerson also predicted full-year adjusted income of 20 cents to 21 cents per share and revenue of $77 million to $79 million. Analysts forecast earnings of 22 cents per share on revenue of $78.5 million.

Roth Capital Partners analyst Nathan Schneiderman called the company's first-quarter results "slightly disappointing."

In a note to clients, he said the adjusted earnings miss was mainly due to four customers delaying implementation. However, lowered his 2009 earnings estimate to 27 cents per share from 30 cents per share and his price target to $4 from $5.

He also said LivePerson may struggle to reach its earnings guidance for 2008.

Elsewhere, Ferris, Baker Watts analyst Sarathy Raghavan downgraded LivePerson to "Neutral" from "Buy" on fewer near-term catalysts.