Shares of Santa Ana’s MSC.Software Corp., a maker of simulation software used by manufacturers to test their designs, plunged Tuesday after the company reported third-quarter results that missed Wall Street’s expectations.
The stock fell more than 10% on a recent market value of about $530 million.
Sales for the third quarter were $52 million, down 10% from a year earlier.
Analysts were looking for about $58 million.
Revenue from software was down about 13% from a year ago, the company said.
MSC.Software narrowed its loss to $122,000, compared with a loss of nearly $2 million a year ago.
But analysts were expected the company to post profits of about $880,000.
MSC.Software warned investors that third quarter results would come in below expectations back in October.
At the time, the company said it expected revenue of about $57 million for the quarter, below the $61 million Wall Street was looking for at the time.
Analysts lowered their estimates in the interim, but the company still fell short.
MSC. Software has been going through a tough transition as it moves from just selling software to selling its wares as part a whole suite of services.
“The strategic product transition to simulation enterprise solutions is a journey for both MSC.Software and our customers,” Chief Executive Bill Weyand said.
He cited new deals with France’s Airbus SAS and Germany’s Audi AG as evidence that the company’s strategy is coming along.
