May 1 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
"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,
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