Ariba Sees Second-Quarter Shortfall, Ends Agile Merger

Ariba ARBA issued a spate of bad news after the market closed Monday, saying that second-quarter results would come in well below previous expectations, while disclosing plans to cut about one-third of its workforce.

As a result of the difficult economic and market conditions, Ariba and Agile Software AGIL have decided to terminate their proposed merger.

Ariba, a business-to-business software maker, expects revenue of about $90 million for the second quarter ended March 31. Because of the shortfall, the company projected a loss from operations of about 20 cents a share, excluding certain noncash charges for the quarter. According to Thomson Financial/First Call, analysts expect the company to earn 5 cents.

The job cuts will affect 700 workers. Shares of Ariba ended regular Nasdaq trading at $6.53, down $1.37 on the day.