B2B software and services company webMethods (WEBM) was up 5.5% in late morning after warning it now expects earnings per share for the fourth-quarter between breakeven and a loss of 3 cents. Analysts had expected a profit of 6 cents, according to Thomson Financial/First Call.

The company blamed customers' lowered information technology spending as a result of a weakened economy and said revenue for the fiscal year would likely be between $200 and $202 million, compared to the $211.85 million predicted by analysts.

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