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What: Shares of ClickSoftware (NASDAQ:CKSW) have plunged today by as much as 13% after the company warned that second-quarter results would fall short of expectations.
So what: Revenue in the quarter is expected to come in around $24.5 million, translating into just 9% growth. The company's adjusted net loss should be in the range of $0.06 to $0.08 per share. Analysts had been modeling for $27.8 million in sales and positive earnings per share of $0.03.
Now what: The company said customers are transitioning to its cloud-based software-as-a-service, or SaaS, sales faster than expected. As customers contemplate the shift, contracts are being delayed as they conduct due diligence. ClickSoftware sees the trend as positive in the long term, although some short-term bumps may be in store. As a result, the company is reducing its full-year outlook and 2013 revenue should be $110 million to $115 million.
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Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.