First Albany Downgrades Motive

Analyst Andrew Fernandez cites the company's lowered guidance on a sales shortfall

Network software outfit Motive (MOTV ) sees a second quarter loss (GAAP basis). First Albany downgraded its recommendation on the shares to neutral from buy.

Analyst Andrew Fernandez says the stock is expected to be under significant pressure as a result of the company's lowered guidance on a sales shortfall. He says the shortfall is driven by a major-contract slip in the $3 million to $4 million range, deal-size shrinkage, a bookings miss, and backlog fluctuations. The analyst cut his second quarter EPS estimate from 6 cents to 1 cent, and his $26.5 million revenue forecast to $22.5 million. Fernandez tells Standard & Poor's MarketScope that when the company provides further guidance on July 27, he will revisit his 9-cent third quarter EPS estimate then; it is likely that figure will be revised lower at that time.

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