ClickAction Inc., a provider of e-mail marketing products and services, will restate its first-quarter revenue and net income because of a recall of $5 million in software products, the firm said yesterday.
The company, based in Palo Alto, CA, said $2.2 million of the recalled software will be replaced with new products, causing it to revise downward its first-quarter revenue. ClickAction previously reported first-quarter revenue of $11 million, with a profit of $233,000, or 2 cents per share. Its revenue has been restated to $8.2 million, with a net loss of $2.5 million, or 20 cents per share.
ClickAction said it recalled the software products because it was concerned about the financial stability of the companies that were supporting the products. One of those companies informed ClickAction on May 1 that it would no longer support ClickAction's products after May 11.
ClickAction did not name the companies.
ClickAction had planned to file its first-quarter earnings today but postponed the filing pending the results of an investigation into the matter by a special committee.
ClickAction also said its previously announced 2001 revenue projection of $53 million to $55 million, with earnings per share of 21 cents to 24 cents, might have to be revised downward.