July 14, 2000 4:20 PM PDT

Webvan shares crash on poor earnings

Unflattering earnings news pulled down shares of some technology stocks today, including those of online grocer Webvan.

At market's close, the company's shares had dipped $1.53 to $7.78, a drop of 16 percent. The stock fell after Webvan released second-quarter earnings. The company's losses are greater than they were a year ago, although its revenue did exceed expectations.

The Foster City, Calif.-based company reported a pro forma net loss of 17 cents a share, or $57.1 million, compared with a loss of $17.4 million, or 7 cents, from a year ago. Wall Street expected the company to lose 16 cents a share, the consensus estimate of 12 analysts surveyed by First Call/Thomson Financial.

Revenue for the quarter totaled $28.3 million, compared with $16.3 million for the previous quarter and $383,000 from a year ago. Merrill Lynch analyst Henry Blodget had expected the company to generate $23.5 million in revenue and maintained his "accumulate/buy" rating on the stock.

Blodget raised his third-quarter revenue estimate from $42 million to $45 million and his full-year forecast from $156 million to $165 million. However, he increased his per-share loss estimate for the year to 73 cents from 72 cents.

Thomas Weisel cut the stock from "buy" to "market perform."

Shares of Extended Systems took a hit after the company announced that it expects to post a loss of 9 cents to 11 cents a share for the fourth quarter because of lower-than-expected sales in Europe. One analyst surveyed by First Call expected the company to lose 1 cent a share.

The Boise, Idaho-based company's shares fell $37.06, or 43 percent, to $50.06.

Extended Systems makes database and network management software, as well as wireless connectivity products and network print servers.

After Paradyne Networks missed analyst expectations, its shares fell $8.88, or 21 percent, to $34.25 today.

The maker of Internet access products reported earnings of 5 cents a share for the second quarter, compared with a loss of 2 cents a year ago. Revenue rose 43 percent to $75.6 million from $52.8 million. Five analysts surveyed by First Call predicted the company would earn 9 cents a share.

 

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