Open Text (OTEX) - Get Report is the latest small software company to warn that it won't meet third-quarter earnings expectations.

The Ontario-based company said after the bell Monday that it expects to post revenue of $104 million to $106 million, up from $80.2 million a year ago, but below earlier guidance of $108 million to $112 million. Pro forma earnings per share will likely range from 17 cents to 23 cents.

Analysts polled by Thomson First Call were expecting EPS of 29 cents on revenue of $110.84 million.

On a GAAP basis, the company expects to earn a profit of 8 cents to 14 cents per share, compared with last year's profit of 7 cents per share.

John Shackleton, president of Open Text, attributed the shortfall to larger-size deals, which lengthens the time it takes customers to agree to a deal, and "makes pinpoint forecasting very difficult." He added, however, that the company remains confident of growth prospects.

But the market was less confident in recent after-hours trading, sending shares skidding $2.31, or 13.7%, to 14.50. Open Text, whose software is used by businesses to manage content, ended the regular trading day at $16.81 a share, a loss of 29 cents.

The company also issued guidance for the June, or fourth, fiscal quarter, saying it expects a per-share profit of 30 cents to 40 cents on sales ranging from $115 million to $125 million. A company press release noted the wide range of the guidance, saying that, "Based on experience in recent quarters, the company is expanding its guidance ranges to reflect our evolving business model."

Wall Street was expecting a profit of 41 cents per share on sales of $123.51 million.