Shares of eGain lost more than a quarter of their value after the company issued guidance for its first quarter and full year below Wall Street expectations.

Shares fell 27.5% to $5.21 in after-hours trading and had lost about 31% this year through Thursday's close.

The company, which provides AI-powered knowledge management and customer experience automation solutions, said it expects adjusted net income between 5 cents and 8 cents a share for its first quarter, which ends Sept. 30, and revenue between $20.9 million and $21.4 million.

Analysts were looking for adjusted earnings of 8 cents a share and revenue of $22.3 million.

For the full year, eGain forecast adjusted net income between 4 cents and 7 cents a share, and revenue between $84.5 million and $86 million. Analysts were looking for 43 cents a share in adjusted earnings from $94.1 million in revenue.

The outlook came after the company reported that revenue fell to $22.2 million from $23.2 million in the fourth quarter, while profit fell sharply, to $1.3 million, or 5 cents a share, from $30.9 million, or $1.11 a share, from a year earlier. Last year's results included a $29 million tax benefit.