Shares in SolarWinds Corp. slumped in regular trading today after the information technology management software company reduced its full-year outlook.

For its second quarter ended June 30, SolarWinds reported adjusted earnings per share of 21 cents on revenue of $176 million. Analysts had expected 20 cents a share on revenue of $175.53 million.

Net loss in the quarter came in at $622.1 million, including $621.8 million in goodwill impairment charges. The goodwill impairment charge was primarily the result of a take-private transaction that occurred in 2016 and subsequent acquisitions that added to the amount of goodwill. SolarWinds said it was determined that the carrying value of its reporting unit exceeded its fair value, hence the noncash goodwill impairment charge in the quarterly figures.

Highlights in the quarter included the April launch of the SolarWinds Hybrid Cloud Observability platform that allows organizations to accelerate their digital transformation efforts. The platform provides a comprehensive and unified view of today’s modern, distributed and hybrid network environments.

SolarWinds also unveiled its Next-Generation Build System, a model for software development that’s a key component of the company’s Secure By Design Initiative.

“We delivered year-over-year growth in subscription revenue for the second quarter of 25%, improved customer retention to historical levels and are evolving to platform-based solutions that we believe offer the best time to value, time to detect issues and time to resolve issues for our customers,” SolarWinds Chief Executive Sudhakar Ramakrishna said in the earnings release.

For the third quarter, SolarWinds said it expects an adjusted profit of 19 to 21 cents on revenue of $180 million to $185 million. For the full year, the company is predicting a profit of 81 to 86 cents per share on revenue of $715 million to $725 million. The full-year outlook was lower than previously predicted by both the company and financial analysts.

On an earnings call, SolarWinds Chief Financial Officer Bart Kalso said that the reduced guidance was “due to a combination of factors, primarily a weakening of the euro as well as lower expectations in new sales of our products.”

“Our revised new sales expectations are due to some modest incremental softness in our end markets as well as prudently accounting for the broader macro uncertainty created by worldwide concerns over inflation, supply chain disruption issues and challenges in Europe due to the Russia-Ukraine conflict,” Kalso explained.

Investors did not like the revised outlook, as SolarWinds shares dropped almost 10% to close regular trading at $9.37.

Image: SolarWinds