Magic Software (MGIC) - Get Report was down 22.3% in preopen Island trading.

After the close Tuesday the company warned that fourth-quarter earnings and revenue would fall below expectations due to a slowdown in corporate spending on information technology. The company also said its CEO and its president would resign at the end of the year.

UBS Warburg

cut its 12-month target to $4 from $13. Israel's Magic Software in November became the first company to take advantage of a law allowing it to list in Israel as well as New York.