Software and services firm

Citrix Systems

(CTXS) - Get Report

lowered its second-quarter outlook, saying it plans to reduce its workforce by about 10% to help control costs.

The company now expects to earn 5 cents to 6 cents a share, including charges for write-offs and research and development, as well as amortization. In the year ago quarter, Citrix earned 12 cents a share.

Excluding those charges, Citrix expects to post operating earnings of 6 cents to 7 cents a share, compared with the consensus analyst estimate of 11 cents, provided by Thomson Financial/First Call.

Revenue for the quarter is expected to be about $116 million to $118 million, down from $147 million last year and the consensus estimate of $132.20 million.

Citrix, which makes business software to work with the Windows operating system, said its weaker than expected results were caused by an overall economic slowdown, led by slower sales of packaged software typically purchased by companies first adopting the Citrix software.

The company added in a conference call that its software subscription and license business actually increased in the quarter, and core product demand remained flat with first quarter levels.

Citrix also announced plans to slash its headcount by about 10%, cutting 190 jobs to help bring spending in line with revenue. Going forward, Citrix sees third-quarter revenue at about $110 million to $115 million with EPS of 6 cents to 9 cents a share, falling short of the consensus of revenue of $135.29 million with EPS of 13 cents.

For the full year, the company expects to earn 40 cents to 45 cents a share on revenue of $485 million to $495 million.

Shares of Citrix plunged 22% to $4.60 in premaket Instinet trading on the news after closing at $5.92 Monday.