Software company Wind River Systems ( WIND) narrowed its first-quarter loss, thanks to expense management, even as revenue fell 27%. But the company still expects another loss in the second quarter. Shares were dropping about 14% in Instinet premarket trading to $3.65. The Alameda, Calif.-based company lost $10.8 million, or 14 cents a share, in the quarter ended April 30, compared with a loss of $18 million, or 23 cents a share, in the prior-year period. The company had previously forecast a loss of 12 cents to 17 cents a share. On a pro forma basis, the company lost $9.3 million, or 12 cents a share, compared with a loss of $9.8 million, or 12 cents a share, in the first quarter last year. Analysts were expecting the company to lose 8 cents a share. Pro forma results exclude the amortization of purchased intangibles and a gain on sale of assets. Sales were $48.5 million, from $66.4 million in the previous-year first quarter. Analysts had expected sales of $52.4 million. Total expenses were down to $47.1 million, from last year's $65.8 million. Looking to the second quarter, the company expects a loss of 14 cents to 17 cents on revenue that will be flat to down 5%, as compared with the first quarter. Analysts, however, expect revenue to increase to $55.4 million. The company said its full-year expectations include delivering positive cash flow from continuing operations and raising total active users by more than 10%. Separately, the company said Steve Kennedy, its group vice president of worldwide sales and marketing, will leave the company effective June 30.