Verity Software (VRTY) was down 23.7% in preopen Instinet trading after the company warned that its first-quarter loss would be 12 cents a share, sharply below its already lowered forecast for earnings of 11 cents.

According to Thomson Financial/First Call, analysts are expecting the company to earn 13 cents a share.

The data retrieval software company said revenue for the quarter will be in the range of $20 million to $24 million, down from June estimates of $34 million to $36 million.

The company cited order delays and reduced capital spending.

In a release, CEO Gary J. Sbona said the continuing weak global economy will pressure results for the near term and for the fiscal year.