SAN FRANCISCO - Tibco Software (TIBX) warned Wednesday that third-quarter earnings will fall short of expectations.
The Palo Alto, Calif.-based business software company projected that earnings per share, excluding items, would come in at 3 cents to 4 cents on revenue of $130 million to $133 million.
Analysts were expecting EPS of 7 cents on a top line of $140 million, according to Thomson Financial.
The company had previously said it expected revenue for the quarter of $136 million to $142 million.
Shares of Tibco plunged more than 8% in recent after-hours trading to $7.18.
"We saw a large amount of potential business fall out in the last few days of the quarter," said chairman and CEO Vivek Ranadive. Although business was especially weak in financial services and government, the late change in business was spread across client markets and was largely due to delays in specific deals.
Analysts have been expecting to see weakness from the financial services market turn up in the earnings reports of business software developers. Financial services have been hit by turmoil in hedge funds and the mortgage market.
Ranadive said he expects some of the business to return.
The company expects its license revenue for the quarter to be approximately $50 million to $52 million. A year ago, the company posted license revenue of $51.1 million.
The company will release results on Sept. 27.