Online consultancy Razorfish yesterday intensified the woes enveloping the hi-tech sector with a warning of reduced revenues and an unexpected loss in the fourth quarter.
Said chief executive Jeff Dachis: "The market for our services has changed dramatically and we underestimated the magnitude of this shift … [but] we still believe that the underlying trends and strengths of our business model remain in place."
Razorfish now predicts revenues of $50 million for the three months ending December 31, leading to a pro forma net loss in Q4 of 17-22 cents a share. This compares with analysts’ expectations of $82m in revenues and 2 cents a share profit.
The warning came after yesterday’s closing bell at the New York bourse, with Razorfish shares marginally up at $3.09 – a pale shadow of their $56.94 twelve month peak.
News source: Financial Times