Updated from June 19

Shares of



fell Friday, after the software company reported that it had narrowed losses, but revenue and earnings were shy of estimates.

In recent trading the company was down 60 cents, or 10.1%, to $5.36.

Tibco, which develops software used to tie together different applications and computer systems, posted a loss of $0.6 million, or break-even on a per-share basis, compared to a one-penny loss a year ago. Total revenue for the May quarter was $61.5 million, compared to $64.1 million in the second quarter of 2002.

Analysts polled by Thomson First Call had expected the company to earn a penny on sales of $62.25 million.

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Total operating expenses dropped sharply, down from $58.8 million to $51.9 million, due largely to a decline in head count.

Looking forward, the company expects to earn 2 cents on a pro forma basis in the August quarter, on revenue ranging from $66 million to $69 million. Analysts were expecting earnings of $64.1 million.

Although enterprise application integration is generally a priority for IT departments, the field of EAI providers is too large and is being challenged by broader companies, such as

BEA Systems



, that are adding integration capability to their platforms.

After gaining 5 cents in regular trading, Tibco was sinking after hours, off 71 cents, or 12%, to $5.20.