Enterprise software provider Verity ( VRTY) said third-quarter earnings will miss forecasts because of several big contracts that failed to close before Feb. 28.

Verity's stock began to crater around 2:30 p.m. EST Tuesday and closed the regular session down 96 cents, or 8.1%, to $10.99. After a brief trading halt following the 4:30 p.m. release of the news, the stock fell another $1.34, or 12.3%, to $9.55.

Before amortization and other items, Verity expects to earn 5 cents or 6 cents a share in the quarter, which ended Monday. Bottom line, the company expects to break even or earn a penny a share. Revenue will be $33.5 million to $34.2 million.

Analysts surveyed by Thomson First Call were expecting earnings of 13 cents a share before the items on sales of $39.4 million.

"Our performance was impacted by a number of opportunities at the end of quarter not closing as we had anticipated," Verity said. "Despite these purchasing delays, we remain confident in our product portfolio, our team and our ability to expand both our position and leadership in the market for enterprise search, content capture and business process management solutions."