Velti shares tumble after-hours

Velti shares sink after-hours on as 4Q results and outlook disappoint investors

Associated Press

SAN FRANCISCO (AP) -- Velti PLC said Tuesday that higher expenses and weaker revenue hurt its fourth-quarter performance and it posted a loss for the period. The mobile marketing company also said that it expects 2013 will be a transitional year as it trims its business in some parts of the world.

Its shares dropped by 25 percent in after-hours trading.

Velti said in November that it will sell some of its businesses in countries with weak economies, like Greece. That would enable it to focus on products and business regions with strong growth, like the U.S., U.K. and Western Europe.

The company said Tuesday that it was happy with sales in the U.S., Western Europe, Brazil and India in the fourth quarter, but its total revenue came in at the lower end of its expectations.

Velti said it will focus more on customers in those key markets.

"We believe that 2013 will be a transitional year," Jeff Ross, chief financial officer, said in a statement. "We further believe that we will show sequential growth and financial improvement throughout the year and beyond."

The company posted a loss of $5.2 million, or 8 cents per share, for the fourth quarter. That compares with net income of $25 million, or 40 cents per share, in the same quarter of the prior year. On an adjusted basis, it earned 39 cents per share. Revenue increased to $97.5 million from $87.1 million.

Analysts polled by FactSet expected 58 cents per share on revenue of $106.9 million.

The company forecast revenue of $40 million and $44 million for its first quarter and $255 million to $280 million for the full year. Analysts expected $64.7 million and $339.3 million, respectively.

Velti shares fell 78 cents to $2.33 in after-hours trading. Its stock was down 10 cents to close regular trading at $3.11.

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