Broderbund Software Stock Falls 16 Percent
Broderbund Software Inc. shares fell 16 percent after its latest earnings report raised concern that the software company is too reliant on its fast-selling new Riven game.
Broderbund shares fell $5.25 to $28.50 in trading of 3.55 million, seven times the three-month daily average. The company Wednesday reported stronger-than-expected earnings, though most of the gains were from its Riven fantasy game. Sales of educational software fell 12 percent, analysts said.
“Outside of Riven, their other units were down this quarter,” said Stephen Dube, an analyst at Wasserstein Perella Securities in New York. “And there is a question about whether they shipped too many Riven games” to distributors, he said.
Dube rates Broderbund stock a “hold.”