Art Technology Drops a Bomb

Art Technology Group (Nasdaq: ARTG) dropped a bomb on investors. For the third quarter, the company expects a loss of between $1.3 million to $1.5 million. Revenues are forecasted to be $21.3 million. On the news, the stock price plunged 15.22% to $1.95.

ATG does have a strong product line, though. That is, the company has an ecommerce platform – which also includes marketing features and customer care. To build this, ATG has bought a variety of companies over the years. It's most recent deal is the purchase of eStara (which helps with online chat and other customer care applications).

But ATG’s offering is high-priced and the sales cycle can be lumpy. That appears to be the case in the third quarter. Although, management believes that sales will be pushed to the 4th quarter. Yet, it's little consolation for investors.