Serena Software (SRNA) was down 21% in preopen Instinet trading after the company warned late Monday its second-quarter earnings would be 13 to 14 cents a share, below the 23 cents a share expected by analysts and the 18 cents earned in the year-ago period. Revenue will be between $22.5 million and $23.5 million, the company said.

The business software company blamed a difficult economic environment and said it was cutting 45 jobs, or about 12% of its workforce, in an effort to trim costs.