NEW YORK (AP) — Shares of Velti PLC tumbled Thursday after the mobile marketing technology company said it lost money in the third quarter and will sell some businesses that operate in countries with weak economies, like Greece and Balkan nations.
Velti said it wants to focus on key products and business regions with strong growth, like the U.S., United Kingdom, and Western Europe. It is selling its Greek and Balkan business and other assets for about $23.5 million. The company also said it will reduce its spending on internal software development because increased development spending hurt the company's third quarter results.
Velti could receive additional payments for the businesses if they exceed expectations in 2014. It said the sale will reduce its 2012 revenue by $10 million to $15 million.
The company's shares fell $2.14, or 32.2 percent, to $4.50 in afternoon trading. Earlier the stock fell as low as $4.27, its lowest level since January 2010.
In the third quarter Velti said it lost $24.7 million, or 38 cents per share. A year ago the company reported net income of $598,000, or a penny per share. Velti said it lost 3 cents per share if one-time items are excluded.
Revenue jumped 63 percent to $62.4 million from $38.2 million, with software as a service revenue climbing 90 percent.
Analysts expected the company to report earnings of 3 cents per share on $62 million in revenue, according to FactSet.
In the fourth quarter Velti expects to report $97.1 million to $113.1 million. Analysts expected $121.2 million on average.