Business software maker WebMethods (WEBM) cut expectations for its second-quarter results, as license revenue declined year over year.
The company said late Thursday that it now expects to lose 6 cents to 8 cents a share on revenue of $48.5 million to $50 million. WebMethods expects license revenue of $15.5 million to $16.5 million.
The company had previously expected to earn 2 cents to 7 cents a share on revenue of $53.5 million to $56.5 million, with license revenue making up $19.5 million to $22.5 million.
A Thomson First Call analyst survey had, on average, expected a profit of 4 cents a share on revenue of $54.5 million.
"Our performance for the quarter is a clear disappointment. While total revenue was comparable to last year, license revenue declined year-over-year," said David Mitchell, president and CEO, in a press release.
WebMethods said it is evaluating the purchase price accounting for acquisitions of Cerebra and Infravio, which occurred during the second quarter. In addition, the quarterly loss is expected to include expenses of about $700,000 for amortization of acquired intangibles, $3 million related to stock-based compensation and $400,000 of income tax expense.
Shares of WebMethods were halted immediately prior to the announcement.