Mercator crumbles on 2Q warning

Mercator Software (Nasdaq: MCTR) tumbled 60 percent Monday after the company issued a second quarter profit warning. The company also said it has a new CFO.

Shares were down 3 38/64 to 24 37/64.

The company reported Friday that due to higher than forecasted sales and marketing expenses, earnings per share are expected to be below expectations, at about 4 cents a share. That's half of what analysts were expecting. First Call Corp.'s consensus estimates had the company posting a profit of 8 cents per share.

Revenue for the first quarter is expected to be "modestly above" estimates, the company added.

In a Monday release. Mercator said Monday it has named Kevin McKay chief financial officer to replace Ira Gerard, who is stepping down because of health reasons.

McKay was formerly chief executive of SAP America. Gerard will assume the position of vice president of finance, reporting to McKay, the software maker said in a statement.

Mercator plans to announce earnings after close of market on July 20.