Kit Digital Drops to Record in Prague After Sales Miss Estimates

Kit Digital Inc. (KITD) fell to a record in Prague trading after the online video software maker missed its quarterly sales estimates and said its full-year guidance was too “high.”

The stock plunged 12 koruna, or 13 percent, to 83.7 koruna at 3:49 p.m., its lowest level since the company listed in Prague in January 2010. After a detailed review of earnings the management concluded its guidance was too “high”, Chief Executive Officer Barak Bar Cohen said in a statement yesterday. The company plans to publish revised guidance on May 15, together with first-quarter results, he said.

“The news is clearly negative and shows that management has not been honest with investors over the earnings performance and development,” J&T Banka AS’ analyst team, led by Milan Vanicek, wrote in a note to clients today.

The company reiterated on March 15 that it expects 2012 revenue to be between $320 million and $330 million.

To contact the reporter on this story: Lenka Ponikelska in Prague at lponikelska1@bloomberg.net

To contact the editor responsible for this story: James M. Gomez at jagomez@bloomberg.net

Bloomberg reserves the right to edit or remove comments but is under no obligation to do so, or to explain individual moderation decisions.

Please enable JavaScript to view the comments powered by Disqus.