Digital Insight Shares Fall on Outlook News

Digital Insight Corp. shares had their biggest one-day drop since the Internet banking software company went public in October 1999 after saying second-quarter profit would be less than forecast.

The stock fell $5.91, or 25%, to $18.26 on Nasdaq. The Calabasas-based company also plans to cut about 100 jobs, or 15% of its work force, in the next two quarters, Chief Financial Officer Liz Murray said.

Digital Insight said it expects second-quarter profit, excluding certain costs, of 5 cents to 6 cents a share. It was expected to earn 8cents.

On Thursday, the company said its first-quarter loss widened to $34.7 million, or $1.11 a share, compared with a loss of $20 million, or 69 cents, a year earlier.