QRS Corp. (Nasdaq: QRSI) fell 1 11/16 to 8 7/16 after reporting third-quarter results that fell short of analysts’ expectations.
The Richmond, California-based provider of business-to-business (B2B) online commerce services said revenue for the quarter rose 17 percent from a year earlier to $37.9 million, while the loss before items totaled $1.7 million, or 12 cents per fully diluted share, against analysts’ expectations of a 16 cent profit.
A year earlier, the company earned $4.7 million, or 33 cents per share, before items.
The company said the results reflect expenses associated with acquisitions. According to QRS, the integration of recent acquisitions into existing operations put pressure on results in the latest quarter.
“The company has made significant changes to its business in anticipation of the continuing evolution of e-commerce and the establishment of retail marketplaces,” said chief financial officer Alan Geddes.
Robertson Stephens reportedly downgraded QRS to market perform from long-term attractive following the release of the results.
Chase H&Q, while maintaining a buy recommendation on the stock, said the company’s results came in “well short” of its estimates for $42 million in revenue and earnings of 16 cents per share. The stock, however, is “too cheap to downgrade,” the firm said. QRS shares, which were approaching the 120 level last March, earlier this month set a 52-week low of 10.
The company’s customers include Gottshalks, Zappos.com, Target and Webvan.