Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: IntraLinks Holdings (NYSE: IL) dropped 34% in intraday trading today after reporting lower-than-expected first-quarter revenue and issuing disappointing guidance for the current quarter.

So what: First-quarter revenue of $52.4 million grew 31% year over year but came in short of the consensus forecast of $53 million. Second-quarter guidance calls for non-GAAP EPS (aka "earnings before bad stuff") of $0.09 to $0.11 and revenue of $51 million to $53 million, below consensus expectations of non-GAAP EPS of $0.13 and revenue of $54.4 million.

Now what: Expectations that revenue will be flat to down sequentially in the second quarter, disappointing revenue in the first quarter, and management's comment that "We ... have strengthened our sales leadership and will continue to expand our sales teams" are all reasons to worry about the company's ability to cost-effectively bring in business. For 2011, management expects GAAP EPS of $0.06 to $0.08 and non-GAAP EPS of $0.50 to $0.57 (in line with the consensus estimate of $0.54) for 2011 P/E ratios of about 295 times based on estimated GAAP EPS and about 39 times based on estimated non-GAAP EPS. Even after today's drop, the price of this stock is all about opportunity and SaaS (Software-as-a-Service) frenzy.

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