Witness Systems shares dive on third-quarter profit, revenue warning

NEW YORK - The stock of Witness Systems Incorporated plunged Wednesday after the information-technology concern said third-quarter revenue and earnings would miss expectations because of customers delaying purchases in the economic downturn. <br> <br> Shares of Witness Systems closed down $4.07, or 64 percent, at $2.26 on the Nasdaq Stock Market. <br> <br> Atlanta-based Witness Systems, with revenue of $61.8 million last year, makes software that helps businesses manage customer service. <br> <br> David Gould, Witness Systems&#39; chairman and chief executive, said 28 contracts from both new and old customers were postponed in the quarter. <br> <br> For the third quarter, Witness expects to report a loss of four cents to five cents a share, on $15 million in revenue. Analysts had been expecting the company to post a profit of three cents to four cents a share. For the same period last year, the company reported break-even earnings. <br> <br> The company is expected to report third-quarter financial results on October 21.