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E2open tumbles after hours on earnings, outlook

FOSTER CITY, Calif. (AP) -- E2open Inc.'s shares shed more than a quarter of their value in after-hours trading Tuesday after the cloud-computing software company reported a larger-than-expected loss for its fiscal fourth quarter and issued a dismal forecast.

The Foster City, Calif., company reported a loss of $2.8 million, or 11 cents per share, for the quarter that ended in February. The company broke even its fourth quarter of the prior year. After adjusting for a contract amendment and other matters, it had a loss of 6 cents per share versus earnings of 5 cents per last year.

E2open's total revenue edged up to $17.6 million from $17 million last year.

The quarter fell short of the market's expectations. Analysts polled by FactSet were, on average, anticipating an adjusted loss of 5 cents per share and $19.7 million in revenue.

CEO Mark Woodward said the company is well-positioned for its full-year subscription revenue to grow in 2014, based on its bookings during 2013. But he said this will be a "transition year" for the company's professional services business. It cited a shift in its strategy that will lead to lower professional services revenue and profits in the near term but which the company believes will help increase subscription revenue growth, market share and profit in the long run.

E2open forecast a fiscal first-quarter loss between 18 cents and 22 cents per share on an adjusted basis and revenue between $15 million to $15.5 million. Analysts had forecast an adjusted loss of 4 cents per share on revenue of $20.2 million for the quarter.

For the full year, E2open expects a loss of 33 to 36 cents per share on an adjusted basis with revenue between $75 million and $77 million. Analysts had forecast adjusted earnings of 6 cents per share on revenue of $89.5 million.

E2open shares sank $4.76 to $13.81 in after-hours trading. The company's stock fell 15 cents to close regular trading at $18.57 before the release of the earnings report.