NEW YORK (AP) — Shares of companies that make business software fell sharply Friday following new warnings about the health of Europe and a disappointing jobs report in the U.S.
Informatica, which makes software for businesses, said late Thursday that it expects revenue of just $188 million to $190 million in the second quarter, far below the $217 million that analysts surveyed by FactSet had expected.
CEO Sohaib Abbasi said the company failed to adapt adequately "to the changing macroeconomic environment, especially in Europe."
Shares of Informatica Corp., fell $12.78, or 29 percent, to $30.59 in late morning trading Friday.
Other providers of business software and services slid as well:
— Red Hat Inc. was down $3.62, or 6.4 percent, to $53.05.
— Salesforce.com Inc. fell $7.39, or 5.2 percent, to $135.03.
— EMC Corp. was down $1.39, or 5.5 percent, to $23.85.
— Citrix Systems Inc. lost $6.53, or 7.8 percent, to $77.25.
However, the entire tech sector was hit after the Labor Department said that only 80,000 jobs were created in June, the third straight month of weak hiring. If companies are not hiring workers, they are unlikely to be spending aggressively on technology.
Among the biggest decliners:
— Advanced Micro Devices Inc. slid 18 cents, or 3.1 percent, to $5.70.
— Hewlett-Packard Co. lost 62 cents, or 3.1 percent, to $19.66.
— IBM Corp. fell $5.11, or 2.6 percent, to $190.18.
— Intel Corp. fell 59 cents, or 2.2 percent, to $25.96.
— Microsoft Corp. lost 70 cents, or 2.3 percent, to $30.