Jive Software Shares Plunge 16% On Wider Q2 Loss, Weak Guidance

(RTTNews) - Shares of Jive Software, Inc. (JIVE) plunged nearly 16 percent in extended trading on Tuesday after the social networking business software maker reported a wider loss for the second quarter from last year, and slashed its guidance for the full-year 2013.

However, adjusted loss per share came in narrower than analysts' expectations, while quarterly revenues topped their estimates by a whisker.

"Our second quarter financial results met or exceeded our guidance on both the top and bottom line. However, the evolution of the market toward the mainstream buyer, combined with our go-to-market execution challenges, led to longer than expected sales cycles at the end of the quarter," Chairman & CEO Tony Zingale said in a statement. Palo Alto, California-based Jive reported a net loss of $17.78 million or $0.27 per share for the second quarter, wider than $11.63 million or $0.19 per share in the prior-year quarter.

Excluding special items, adjusted net loss for the quarter was $9.46 million or $0.14 per share, compared to adjusted net loss of $6.84 million or $0.11 per share in the year-ago quarter.

On average, 12 analysts polled by Thomson Reuters expected the company to report a loss of $0.16 per share for the quarter. Analysts' estimates typically exclude special items.

Jive's revenues for the quarter grew 31 percent to $35.24 million from $26.95 million in the same quarter last year. Ten Wall Street analysts expected revenues of $35.16 million for the quarter.

Zingale noted that, "Despite these challenges, we signed new blue chip customers, expanded relationships with existing strategic customers and led the market by delivering significant new product innovations."

The company's product revenues for the quarter advanced 32 percent to $31.56 million, and professional services revenues rose 21 percent to $3.68 million from the prior-year quarter.

Total billings, which Jive defines as revenue plus the change in total deferred revenue, increased 24 percent to $42.0 million from last year.

Adjusted gross margin for the quarter improved 300 basis points to 67 percent from last year, while general and administrative expenses as a percentage of total sales expanded 300 basis points and research and development expenses increased 100 basis points. Looking ahead to the third quarter, the company expects adjusted loss in a range of $0.14 to $0.16 per share, on projected revenues between $36 million to $37 million.

Analysts currently expect a loss of $0.14 per share on revenues of $38.19 million for the third quarter.

For fiscal 2013, the company widened its loss guidance to a range of $0.59 to $0.62 per share from the prior forecast range of $0.53 to $0.60 per share.

Revenues are also now expected in a range of $144.0 million to $146.0 million, down from the previous projection between $148.0 million to $153.0 million.

Street is currently looking for full-year 2013 loss of $0.58 per share on annual revenues of $150.27 million.

"While the move to mainstream buyers is not without new challenges, we believe the reward for winning this opportunity will be substantial. We expect the Company to deliver improved execution in the second half of the year, and we believe that Jive is well positioned to be the pure play winner in the social business market," Zingale added.

JIVE closed Tuesday's regular trading session at $17.07, down $0.03 or 0.18% on a volume of 0.80 million shares. The stock plunged a further $2.72 or 15.93% in after-hours trading.