Senate approves $1.9 trillion stimulus bill Apple's iMac Pro to be discontinued Coming 2 America review Tom Cruise deepfakes Best Buy's 3-day sale Raya and the Last Dragon

Magic Software shares fall on warning

Some of the value of Magic Software Enterprises’ (Nasdaq: MGIC) stock disappeared Wednesday on news that it will miss fourth quarter estimates.

Shares of the Israeli software maker fell 7 percent, dropping 0.188 to 2.31. The stock had been down as much as 22 percent before the bell.

After the bell Tuesday, the company said it expects to fall short of earnings and revenue estimates for its fourth-quarter, due to a slowdown in corporate information technology spending.

The company also announced that both its CEO Jack Dunietz and its president Israel Teiblum would be leaving the company at the end of the year. Current chairman Dan Goldstein will assume their responsibilities.

The company now expects a fourth-quarter loss of $6 million on revenues of $23 million. The results include one-time restructuring charges, which will account for about half of the loss. First Call estimates had been looking for a profit of 5 cents a share.

According to Goldstein, many of the company’s deals have been postponed until 2001 while customers reassess their own spending in light of the current market. He said he expects the deals to be realized in coming quarters.