May 8 (Reuters) - Data analytics company Teradata Corp warned that second-quarter revenue would fall and said it expected its full-year revenue and adjusted profit would come in at the lower end of its forecast.
The company’s shares fell as much as 14 percent to $37.68.
Teradata said its top 50 customers were holding back on technology spending and that it expected to close fewer large deals in the second quarter than in the first quarter.
“Our largest headwind for revenue growth remains with our Americas top 50 customers ... (and) revenue is expected to be down from prior year in Q2,” Chief Executive Mike Koehler said in a conference call.
Koehler said Americas’ revenue in the second quarter ending June could also be lower than that in the first quarter ended March 31 depending on when the company closed deals.
“The biggest reason for the reduction in guidance was ... they are seeing fewer opportunities for revenue growth in their top 50 U.S. customers, which represent about a third of their revenue,” RBC Capital Markets analyst Matthew Hedberg said.
Since some deals that were expected to close in the current quarter ended up being closed in the first quarter, Teradata’s revenue in the first quarter rose 7 percent to $628 million.
That was better than the $614.6 million that analysts’ on average were expecting, according to Thomson Reuters I/B/E/S.
The company had previously forecast full year adjusted profit of $2.85-$3.00 per share on revenue growth of 3-7 percent.
Shares of the company were down 10 percent at $39.49 in late morning trading on the New York Stock Exchange on Thursday. (Reporting by Soham Chatterjee and Sampad Patnaik; Editing by Savio D‘Souza)