Shares of Active Network Inc. (NYSE: ACTV), one of the biggest websites for registrants in events like sports marathons and Little Leagues, plunged more 46 percent Friday after the company forecast a fourth-quarter loss.
Shares of the San Diego-based company closed down 42 percent at $5.42, down $3.87, trimming its market value in a single day to only $323 million. Earlier, they touched $5.02, down nearly 46 percent.
After the close Thursday, Active Network reported its third-quarter loss widened to $6.02 million, or 10 cents a share, from $1.43 million, or 3 cents a year ago. Revenue rose 22 percent to $109.2 million.
But the chill was the forecast of lower fourth-quarter revenue, ranging between $93 million and $97 million, with a net loss between $13 million and $18 million, comtributing to a full-year loss ranging between $42 million and $47 million, only falling in 2013 to a net loss between $31 million and $38 million.
The future losses shouldn't be a surprise. In July, Active Network CEO Dave Alberga told IBTimes the company didn't expect to report net income for several years as it built up infrastructure and acquisitions to expand its business.
In a statement, Alberga said, “Our team will be laser-focused on product innovation and execution.”
Analysts at Bank of America, Barrington Research and Northland Capital all downgraded the shares to “underperform” from “market perform.”
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