Entrust Issues Earnings Warning On Independence Day

Ah, Independence Day. The time for hot dogs, ice cream, baseball and earnings warnings you’d like people not to see. Entrust (ENTU), which makes digital identity software, chose Wednesday afternoon to issue a second quarter earnings warning.

The company says it expects to report revenue for the second quarter of $24.3 million, below Street expectations of $27.44 million. The company sees a pro forma loss for the quarter of 2 cents a share; the Street had expected a profit of 3 cents.

Entrust also said it expects second half revenue of $55 million. Irritating that it issues guidance for a period no one really tracks; but if you do the math you find that the forecast implies full year revenue of $103.9 million, far short of the Street consensus of $113.36 million. Likewise, the company sees a second half pro forma profit of 4 cents a share, which would mean a full year profit of about one cent a share; the Street has been expecting 11 cents.

In the release, CEO Bill Conner said he is “disappointed in our revenue attainment from large deals” in the latest quarter.

Entrust Thursday is down 47 cents, or 12%, at $3.53.

ENTU 1-yr chart: