MERQ ( $37-$31-$36)lowers third quarter outlook
NEW YORK, July 18 (Reuters) - Application testing and performance software maker Mercury Interactive Corp.(NasdaqNM:MERQ - news) on Wednesday reduced the outlook for the third quarter and the year as a protracted U.S. slowdown shows no signs ending.
Mercury said it now expects third-quarter revenues to be flat, in the range of $90 million to $100 million and earnings, excluding charges, to be 17 cents or 18 cents a share.
Analysts had expected the company, to earn on average 22 cents for the quarter, with estimates ranging between 20 cents to 23 cents a shares, according to Thomson Financial/First Call. Revenue was expected to be $110.13 for the quarter.
The Sunnyvale, California-based company also said it sees revenue for the year of about $390 million and $405 million, translating, one analyst said, into earnings between 75 cents to 80 cents a share. Prior to the announcement analysts had expected earnings for the year to be about 89 cents, with estimates ranging from 87 cents to 94 cents and revenue to be about $429.67 million.
The company also said that to reduce expenses, it has cut 8 percent of its workforce, or 140-150 jobs, senior executives pay by 15 percent and shelved salary increases. The company said it would take a $2.75 million to $3.5 million charge in the third quarter to cover the costs of the layoffs.
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