UPDATE: NetCreations' Stock Falls on 3Q Earnings News
After closing at $20.88 Sept. 11, the stock plummeted $8.88 to finish trading Sept. 12 at $12. The next day it inched downward, closing at $11.25. And on Sept. 14 the stock dipped again, ending the day at $11.13. During that span, NetCreations stock price fell approximately 46.7 percent.
The drop coincided with a NetCreations announcement that its third-quarter net revenues would be between $14 million and $15 million and that its net income would come in at 4 cents to 6 cents per share. Analysts' forecast the company's third-quarter income would be 11 cents per share, according to news reports.
NetCreations cited an industry downturn for the shortfall.
"The third quarter has been a difficult one for Internet advertising companies, and NetCreations is no exception," Rosalind Resnick, chairman and CEO at NetCreations, said in a prepared statement. "Our revenues and earnings have been adversely affected by the decline in marketing-related expenses associated with our business-to-consumer dot-com customers as they are being forced to operate within increasingly tighter budgets in order to attain profitability."
NetCreations went public in November 1999 and debuted at $13 a share. It saw a 52-week high of $69.75. As recently as early July, NetCreations' stock traded as high as $50 per share.
The company also announced that it has named Robert Mattes its new chief financial officer. Mattes joined NetCreations in April as its vice president of finance and controller. He fills a spot that has been vacant since the July resignation of former CFO Gary Sindler.