Kana's 1Q Numbers Heading SouthKana's 1Q Numbers Heading South

CRM vendor Kana Inc. took a hit in its first quarter, with lower revenue and a net loss.

For the period ended March 31, Kana posted $18.1 million in revenue, compared with $25.1 million for the same period a year ago. The company lost $3.9 million, or 17 cents per share, versus a $6.8 million loss, or 32 cents a share, a year ago. Kana cut costs in sales and marketing, but the biggest cut came in the amortization of intangible assets and stock-based compensation, which last year added $11.1 million to the company's operating expenses but this year only cost the company $2.6 million.

The bulk of the revenue drop came from licenses, which brought in only $9.3 million in the first quarter, compared with $15.1 million last year. Service revenue dropped to $943,000, compared with $2.5 million last year, while maintenance revenue was up to $7.8 million, from $7.5 million last year.

The earnings report reflects the general struggles of the highly competitive CRM industry. E.piphany Inc., another smaller CRM player, posted relatively flat results Monday, and later this week, CRM powerhouse Siebel Systems Inc. is expected to show license revenue down about 50% from last year and negative operating income.