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webMethods Meets Lowered Estimates

The software-integration company meets reduced earnings and revenue numbers.

webMethods

(WEBM)

, the erstwhile highflying integration-software company that said earlier this month its once-surging business had slowed, reported numbers in line with analysts' lowered expectations Wednesday.

The Fairfax, Va.-based firm said that excluding certain charges, it lost $4.4 million, or 9 cents per share, on revenue of $55.4 million. A year ago, the company lost 9 cents per share, or $4.1 million, on $35.1 million in revenue, excluding special items.

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Analysts were expecting a loss of 9 cents per share on revenue of $55.1 million, according to Multex.com. Before webMethods issued a

profit and revenue warning July 6, saying that it also would slash 15% of its workforce, analysts were predicting a loss of 2 cents per share on revenue of $62.5 million.

Including all charges, the company lost $19.9 million, or 41 cents per share. On a comparable basis a year ago, it lost $20.9 million, or 46 cents per share.

webMethods said it expects to take a restructuring charge of $7 million to $7.5 million during the quarter ending Sept. 30, 2001, to account for the layoffs.

In regular trading, shares of webMethods closed down $1.38, or 7.7%, at $16.54. After releasing its results, the company's stock slid further in after-hours trading to $16.20, according to Instinet.