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Velti shares fall on weak 2Q revenue outlook

NEW YORK (AP) -- Shares of Velti PLC tumbled Tuesday after the mobile marketing company posted a smaller-than-expected quarterly loss, but issued a weak revenue prediction for the current period.

THE SPARK: Excluding one-time items, Velti posted a loss of 27 cents per share. Analysts polled by FactSet expected a loss of 36 cents per share. Revenue tumbled 21 percent to $41 million, slightly below average predictions of $41.2 million.

Velti projected second-quarter revenue of between $42 million and $45 million, below Wall Street predictions of $54.3 million.

The company also said it expects its full-year revenue to come in below the midpoint of its previously predicted range of $255 million to $280 million. Analysts expect 2013 revenue of $257.6 million.

THE BIG PICTURE: Dublin, Ireland-based Velti said it continued to take steps to boost its finances during the recent quarter, including a more than 20 percent reduction to its employee ranks and the implementation of tougher cost controls.

CEO Alex Moukas said 2013 will be a transitional year as the company works to get the most out of its businesses and is selective about the sales opportunities it pursues.

THE ANALYSIS: Jefferies analyst Peter Misek, who backed his "Hold" rating for the stock, noted that Velti's plan to boost sales while cutting expenses by 20 percent increases its risk.

Misek said it will be tough for the company to boost revenue as much as it wants this year, adding that it may have to undertake another round of cost cuts in the third quarter to meet its profit goals.

THE SHARES: Down 24 cents, or 12 percent, to $1.76 in afternoon trading, after dropping as low as $1.72 earlier in the day. Over the past 52 weeks, the company's shares have traded between $1.53 and $10.43.

Over the past year, Velti shares have tumbled to lose about 76 percent of their value.