Mercator Software

(MCTR)

was down 18.6% in preopen

Island

trading.

The company said after the close Thursday that first-quarter revenue would be about 15% to 18% below the previous quarter as the company reorganizes itself.

For the fourth quarter, the company posted a loss of 10 cents per share vs. the

First Call/Thomson Financial Estimate

of 9 cents and the year-ago 6-cent profit.