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
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
trading at $6.53, down $1.37 on the day.