Rainmaker Systems (RMKR) Sinks After Dell Ends Agreement

Rainmaker Systems, Inc. (Nasdaq: RMKR) is under heavy pressure this morning after the company was notified by significant customer, Dell (Nasdaq: DELL), of a change in corporate direction and intent to bring work in-house, resulting in a termination of its agreement with Rainmaker. This client represented approximately 25% of Rainmaker's 2007 fourth quarter revenue.

Rainmaker is providing preliminary fiscal year 2008 revenue guidance of $68 million to $72 million. The Wall Street consensus is $91.2 million.

Shares of Rainmaker Systems are down 45% this morning.

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