Premiere Global shares fall on weaker 2009 outlook

Premiere Global shares drop a day after forecasting lower profit, revenue for 2009

• On 1:04 pm EDT, Wednesday September 16, 2009

PITTSBURGH (AP) -- Shares of Premiere Global Services Inc. tumbled Wednesday, a day after the company said its 2009 profit and revenue will fall below expectations because of weak demand for its conferencing technology.

The Atlanta-based business communications services provider on Tuesday forecast full-year adjusted earnings of 84 cents to 90 cents per share, and revenue of $595 million to $605 million. Analysts, on average, were expecting the company to earn $1 per share on revenue of $617 million for the year, according to a survey by Thomson Reuters.

The company said in July that full-year earnings and revenue would decline "modestly" from 2008, when it reported adjusted earnings of $1.03 per share, on sales of $624.2 million.

Premiere said it also expects to incur costs for severance payments and to abandon leases, as part of a restructuring effort.

Shares of Premiere sank 77 cents, or 8.6 percent, to $8.21 in afternoon trading.