Ariba warns of Q2 loss, to cut one-third of work force
NEW YORK, April 2 (Reuters) - Business-to-business software company Ariba Inc. (NasdaqNM:ARBA - news) on Monday said its second quarter results would be far lower than Wall Street expectations, and said it would cut 700 jobs, about a third of its work force.
The company said it expected to post a loss of 20 cents a share, excluding non-cash charges. Analysts polled by Thomson Financial/First Call were expecting the company to post a profit of 5 cents a share.
Ariba said revenues were expected to be about $90 million. That would be about half the Wall Street consensus of around $180 million, according First Call.
Ariba also said it was scrapping its acquisition of Agile Software Inc. The deal was valued at $2.55 billion when it was originally announced but has since fallen to about $400 million following a steep drop in Ariba stock.