The announcement that revenues for the third quarter would be "in the range of $34.5 to $35.5 million" -- down from $38.3 million in the previous quarter and below the analyst consensus of $39.4 million -- sent the share price tumbling by $1.30, more than 20 percent, to $5.17 by the end of Tuesday, though the stock had hit its 12-month low of $3.97 during the day. Its 12-month high is $10.55, hit in mid February.
That drop was the result of furious trading that saw the day's volume hit 17.22 million, compared with the daily average of just more than one million shares. Micromuse has 78.27 million shares outstanding.
Yesterday offered little respite for the stock. It dropped another 18 cents, or 3.5 percent, to $4.99 as 3.6 million shares were traded. That further dip took its capitalization down to $390 million, less than half its mid-February valuation.
Get further details at Boardwatch.
— Ray Le Maistre, International Editor, Boardwatch
For more on this topic, check out:
- The Light Reading Insider report:
OSS Opportunity: Telecom's Promise of Software Simplicity
- The Heavy Reading reports:
Next-Gen OSS Channel Partnerships and Strategies: Wireline Sector
Next-Gen OSS Channel Partnerships and Strategies: Wireless Sector
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