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Transaction Systems Lowers First-Quarter Guidance

Transaction Systems


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.

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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.