KANA (+7 @ $41) reports 975% rise in Q3 revenue
By Myra P. Saefong, CBS.MarketWatch.com
Last Update: 4:38 PM ET Oct 20, 2000 NewsWatch
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REDWOOD CITY, Calif. (CBS.MW) -- Shares of Kana Communications jumped 36 percent Friday after the company said strong demand for its relationship management products boosted its year-over-year revenue by 975 percent.
Shares rose $6.94 to close at $26.06, well off their 52-week low of $13.56 seen on Oct. 13.
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Updated:
10/20/2000 5:14:10 PM ET
The enterprise relationship management provider (KANA: news, msgs) posted third-quarter revenue of $40.6 million late Thursday, up from only $3.8 million in the same period a year ago.
Total revenue beat out First Union Securities' $33.9 million estimate.
Michael McCloskey, Kana's chief executive, said the record revenue reveals "continuing worldwide adoption" of the company's relationship management products, both by leading companies and systems integrators.
The company also posted a third-quarter pro forma loss of $19.7 million, or 22 cents per share on 88.4 million shares.
On average, analysts polled by First Call were expecting a per-share loss of 23 cents.
A year ago, the company lost $9 million, or 65 cents per share on 13.9 million shares. Pro forma loss narrowed from the $20.3 million, or 24-cent loss seen in the second quarter.
Recommendations
As a result of the smaller-than-expected loss, Jason Maynard of First Union Securities, who maintains a "buy" rating on Kana's stock, raised his 2000 and 2001 revenue estimates to $136.6 million and $239.9 million from $112.5 million and $209.1 million, respectively.
He also reduced his loss-per-share estimates for fiscal 2000 to 85 cents from 88 cents and 2001 loss-per-share estimate to 29 cents from 30 cents.
Reginal King, an analyst at Chase H&Q reiterated a "strong buy" rating on the stock, emphasizing that it was trading close to its yearly low.
"As such, investors looking for long-term winners should buy Kana," he said in a research note, "for the company possesses key success factors for victory in this space." |
