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UPDATE 1-ServiceSource sees 3rd-quarter below expectations
July 31, 2012 / 9:55 PM / 5 years ago

UPDATE 1-ServiceSource sees 3rd-quarter below expectations

* Sees Q3 adj loss/shr $0.02 to $0.00 vs est EPS $0.01

* Sees Q3 rev $57.5 mln-$59.5 mln vs est $60.6 mln

* Q2 adj EPS $0.02 vs est $0.01

* Q2 revenue $59.7 mln vs est $59.1 mln

July 31 (Reuters) - ServiceSource International Inc forecast third-quarter results that were below analyst estimates, sending the customer management software provider’s shares down 5 percent after the bell.

The company expects to post between a loss of 2 cents per share and breakeven per share on an adjusted basis in the third quarter.

It expects revenue of $57.5 million to $59.5 million.

Analysts on average were expecting third-quarter earnings of 1 cent per share on revenue of $60.6 million, according to Thomson Reuters I/B/E/S.

ServiceSource helps technology companies -- including Adobe Systems Inc, AT&T Inc and Verizon Communications Inc -- manage renewals of service contracts, provide cloud applications, software and other services.

“The business environment is somewhat more challenging on a global basis, including Europe,” Chief Financial Officer David Oppenheimer told Reuters.

The company receives 40 percent of its third-quarter revenue from its international segment.

The third quarter is a seasonally light quarter for the company in terms of the amount of renewals opportunity, the CFO said.

Second-quarter net loss widened to $36.7 million, or 50 cents per share, from $1.1 million, or 2 cents per share, a year earlier.

Excluding items, it posted a profit of 2 cents per share topping analysts’ estimates by 1 cent.

Revenue for the second quarter rose 23 percent to $59.7 million, compared with analysts’ expectations of $59.1 million.

Shares of the company closed at $11.28 on Tuesday on the Nasdaq.

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