Datawatch Provides Weak Q1 Guidance; Stock Plunges 27%

(RTTNews) - Software company Datawatch Corp (DWCH) on Tuesday said it expects to report revenue of $6.9 million to $7 million and adjusted net loss of $4.5 million to $4.6 million for the first quarter of fiscal 2015.

Analysts polled by Thomson Reuters currently expect the company to report revenue of $9.17 million and a loss of $0.16 per share for the quarter.

In the same quarter a year ago, Datawatch had reported revenue of $8.81 million and adjusted net loss of $1.98 million.

"Our performance in the first fiscal quarter of 2015 fell short of our expectations amid a period during which we transitioned our business to a new global sales leader, shifted the sales approach we take in dealing with our extensive customer base and implemented many operational changes," said Michael Morrison, chief executive officer of Datawatch.

Datawatch said it has taken steps to cut its cost structure by reducing investment in legacy solutions and restructuring international operations to align with local selling norms.

These measures are expected to produce about $3 million in annual cost savings, and will result in a one-time charge of about $300,000 in the first quarter and an additional charge of about $500,000 in the second quarter of this year,the company said.

The company plans to release the full results for its first fiscal quarter on January 27.

Datawatch Corp designs business computer software primarily for the visual data discovery market.

DWCH closed Tuesday at $7.62, down $0.14 or 1.80%, on the Nasdaq. In after hours, the stock dropped $2.05 or 26.90% at $5.57.