Zacks senior foreign technology analyst Robert Perri, CFA has recently updated his report on RightNow Technologies (RNOW). We excerpted part of what it had to say:

We expect RightNow to report revenues and earnings in-line with our estimates of $26.8 million, and a loss of $0.19 per share, respectively. If there is any upside, we would like to see it on the revenue side, as our expectations are for the company to continue to run at a loss through 2007.

There is also a new uncertainty in the air as corporate spending has started to slow in the second quarter, which could lead to lower expectations for the remainder of the year. We continue to rate shares of RNOW a Hold with a lower price target of $16.50 per share over the next six months, down from our previous $17.00 per share estimate.

We have tweaked our earnings expectations for the company, although they haven't changed our full-year 2007 or 2008 outlook. We remain concerned with the very high percentage of operating expenses compared to revenues, which stood at 89% in the most recent quarter and management continues to spend to expand the company's product reach, despite the expected slowdown in revenue growth in 2007 due to the discontinuation of perpetual revenues.