Networking software firm

Packeteer

(PKTR)

had fallen 33.7% by midday after warning Thursday that it now expects a pro forma loss of 6 cents to 8 cents a share for the first quarter. Previous guidance had indicated a profit and the

Thomson Financial/First Call

estimate was for earnings of 2 cents.

The company blamed fewer orders as a result of the economic slowdown.

Prudential Securities

reduced its price target to $9 and downgraded the stock to hold from accumulate.

Banc of America

also downgraded the stock, to market perform from buy.