Information technology manager Quest Software Inc. on Tuesday issued preliminary second-quarter results that miss Wall Street expectations, and lowered its annual forecast.
Shares fell $2.59, or 11 percent, to $20 in afternoon trading.
The company, based in the Irvine, Calif., area, said it expects to report second-quarter earnings per share between 22 cents and 24 cents and revenue of $201 million to $204 million.
Analysts surveyed by FactSet are expecting 29 cents per share on revenue of $207.9 million.
Quest Software also lowered its guidance for the year, estimating a revenue growth rate of 11 percent to 12 percent. Its previous forecast was 16 percent.
"Our previous guidance was based on the expected returns on the increased investments that we have been making in our business, including through recent acquisitions," CEO Doug Garn said in a statement. "We have adjusted our guidance to be consistent with our current expectations on the timing and magnitude of the returns on these investments."
In the past year, Quest acquired German software company Volcker Informatik AG, private cloud automation software company Surgient, security software provider e-DMZ Security LLC and announced plans to open a shared services center in Ireland.
Quest Software said it will release its second-quarter results on Aug. 2.
The company provides information technology management and systems to more than 100,000 customers.
