The Fairfax, Virginia-based company expects to post a net loss of between 6 cents to 8 cents a share for the quarter. It had previously guided at earnings of 2 to 7 cents a share. The loss factors in amortization and income tax expenses totaling over $1m and stock-based compensation of $3m.
The company also lowered its revenue outlook to $48.5m to $50m, citing a disappointing year-over-year decline in license revenue which it expects to fall in the range of $15.5m to 16.5m.
It had previously forecast overall revenue of $53.5m to $56.5m for the quarter. Analysts had expected a profit of 4 cents a share on revenue of $54.5m.
David Mitchell, CEO of WebMethods, made no bones about calling the quarter a clear disappointment, pointing to weaker-than-expected license revenue.