SciQuest cuts 2014 forecast on order delays, shares slump
May 1 (Reuters) - SciQuest Inc, whose cloud-based software helps manage supply chains, cut its full-year profit and sales forecast as its enterprise customers delayed signing up for its services.
The company's shares fell as much as 20 percent in post market trading, after it also reported a lower-than-expected first-quarter profit.
"We experienced an unexpected lengthening of sales cycles for large enterprise deals. This caused us to revise full year guidance," Chief Executive Stephen Wiehe said.
The delays were not caused due to competitive pressures, Wiehe added.
The company, which counts Allergan, SABMiller among its customers, now expects 2014 adjusted earnings of 27-30 cents a share on revenue of $101.6-$104.6 million.
The was lower than its previous forecast of adjusted profit of 40-44 cents per share on revenue of $106.5-$111.5 million.
SciQuest's adjusted earnings of 9 cents a share for the first quarter ended March 31 was 1 cent short of the average analysts' estimate, according to Thomson Reuters I/B/E/S.
Revenue in the quarter rose 23 percent to $25.4 million, but lagged analysts' average estimate of $27.1 million. (Reporting by Ankit Ajmera in Bangalore; Editing by Savio D'Souza)