Mercury Interactive Guides Revenue Lower

It sees top-line growth of 7% to 9% in the first quarter.
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Mercury Interactive


will not meet Wall Street's first-quarter revenue expectations, the company warned after Thursday's closing bell.

Mercury, which was delisted by the


at the beginning of the year, said it expects quarterly revenue to grow by 7% to 9% over the same quarter last year, which equals a range of $212.7 million to $216.7 million.

Analysts polled by Thomson First Call were expecting sales of $218.4 million.

Analysts also are projecting a 33-cent-a-share profit for the quarter, but because Mercury is still in the process of restating previous earnings, the company said it could not give EPS guidance for the quarter.

The company said it will file complete results for the quarter after it completes the restatement, but did not give a time frame for either action.

Combined product and maintenance revenue should grow by 10% to 12%, the company said.

Despite the top-line miss, CEO Tony Zingale pronounced himself satisfied with the results. "Mercury's performance remains solid," he said in a written statement. "This is further evidence that Mercury continues to execute as we work expeditiously to bring our financial filings back up to date."

Mercury is restating financial results after a special board committee found that several executives benefited from a program to favorably price options grants. CEO Amnon Landan, CFO Douglas Smith and general counsel Susan Skaer resigned after the findings.

Mercury subsequently missed a deadline to restate quarters that may have been affected by the options issue and was delisted and, just as significantly, removed as a component of the

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