Micromuse (MUSE) was down 3.2% at the bell after the CEO reiterated the company's revenue guidance for the third quarter, but added that it was a tough quarter.

The systems management software maker expects revenue to grow by about 6% to 7%, vs. 9% to 10% normally. The CEO added that "the pipeline is very good," and admitted that the company has a tendency to underestimate results. Analysts are expecting the company to report earnings of 12 cents a share.