Tuesday December 26, 6:36 pm Eastern Time

Magic Software sees 4th qtr below target, CEO to resign

NEW YORK, Dec 26 (Reuters) - Israel's Magic Software Enterprises (MGIC - news), on Tuesday said it expects fourth-quarter earnings and revenues to fall below targets due to a slowdown in corporate spending on information technology.

Magic Chief Executive Jack Dunietz and President Israel Teiblum also plan to leave the company at the end of this year, Magic said. Dan Goldstein, Magic's chairman, will assume their responsibilities.

The company said it expects to post a fourth-quarter loss of $6 million on revenues of $23 million. Results were hurt by one-time expenses, including restructuring charges associated with the changes to Magic's management team.

Magic's Nasdaq-traded shares ended Tuesday at the year low of $2-1/2, off a 52-week high of $33.