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)

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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.