Transaction Systems Lowers First-Quarter Guidance

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Transaction Systems

(TSAI)

lowered its first-quarter earnings guidance due primarily to decreased customer spending and the weak economy.

The e-commerce software provider now expects revenue of $65 million to $66 million, compared with the original forecast of $70 million to $75 million. The company dropped its earnings per share forecast by more than 50%, now expecting 2 cents to 3 cents instead of 6 cents to 12 cents.

The company also said it expects lowered expenses for the quarter and an "excellent operating cashflow," but its new earnings guidance falls short of Wall Street's consensus estimate of 9 cents a share, according to Thomson Financial/First Call.

Shares of Transaction Systems closed down 40 cents to $11.86 before the announcement Wednesday.