Shares of Interactive Intelligence Group Inc. sank 16 percent Wednesday morning after the local firm announced that its second-quarter revenue would be lower than expected due to delays in signing contracts with large customers.
Revenue for the quarter is expected to be between $78 million and $80 million, the software and services firm said. The company originally forecasted revenue of $86 million to $88 million.
“Certain large on-premises deals that we had expected to be signed during the quarter were delayed, and we continued to defer revenues from two sizable contracts signed in prior periods that we had expected to recognize during the second quarter,” company founder and CEO Donald Brown said in a prepared statement.
“While we continue to examine all aspects of our performance in the quarter, our company’s global salesforce is working with the largest pipeline we’ve ever had, and we continue to see growth in our cloud business. We remain confident in our ability to gain market share and further strengthen our competitive position,” he said.
In a preliminary earnings announcement, Interactive said that it expected to report an operating loss between $11 million and $12 million.
Profit at Interactive, which develops software for corporate contact centers, has taken hits the past few years as the company has moved its business model to subscription-based cloud services from on-site installations and services. The shift meant collecting revenue more gradually over longer times versus receiving upfront fees.
Interactive’s shares had fallen 16 percent, to $41.95, in late-morning trading Wednesday.
The firm expects to release its final second-quarter results Aug. 4.