PeopleSoft

(PSFT)

, one of the world's largest software companies, warned that earnings and license revenue for its quarter would be well under its earlier guidance.

Blaming weak capital spending and uncertainty caused by the war, the company said it could miss license revenue estimates by as much as 40%.

The Pleasanton, Calif., company now expects first quarter earnings of 11 cents to 12 cents a share on total revenue of $450 million to $455 million. Wall Street had expected the company to earn 14 cents on revenue of $483.6 million in the March quarter.

Tellingly, PeopleSoft has reduced its guidance for a key measure -- revenue derived from license sales -- from a range of $125 million to $135 million -- to $80 million to $85 million.

PeopleSoft shares dropped $2.69, or 16.3%, to $13.81 in after-hours trading.