Tuesday December 26, 8:08 pm Eastern Time

B2B software maker eXcelon lowers Q4 revs, net forecast

BURLINGTON, Mass., Dec 26 (Reuters) -Business-to-business and database software maker eXcelon Corp. (NasdaqNM:EXLN - news) on Tuesday trimmed its fourth-quarter revenue and earning estimates, citing reduced spending by telecommunications and dot-com companies.

With its warning, eXcelon joins software giant Microsoft Corp. (NasdaqNM:MSFT - news), Israel-based Magic Software Enterprises (NasdaqNM:MGIC - news) and a host of other companies that blame the weakening global economy for prompting a slowdown in sales.

eXcelon's revenues for the quarter ending Dec. 31 are now expected to be in the range of $14.5 million and $15.5 million, while losses will be between 23 cents and 26 cents a diluted share, Bob Goldman, eXcelon's chairman and chief executive, said in a conference call on Tuesday.

A survey of financial analysts estimated fourth-quarter losses of 4 cents a share, according to First Call/Thomson Financial.

"We closed no large deals in the quarter," said Goldman, who added that the period's largest sale was $500,000.

eXcelon's fourth-quarter database management revenues will be $5.8 million, rather than $7.5 million, and B2B revenue will be halved to $2.6 million from the expected $5.2 million.

"We saw really for the first time in five to six quarters, no deal over $1 million in the telco space," Goldman said.

"Many of the dot-coms have gone away for good," along with up to $1.5 million in expected fourth-quarter sales, he said.

In addition, deals with Amazon.com, department stores and grocery chains shrank or languished while sales to financial services and insurance companies remain in the pipeline.

As a result of the fourth-quarter adjustment, eXcelon's fiscal 2000 revenues will be in the range of $69 million to $71 million, about 8 percent lower than previously expected. The company's fiscal 2000 loss also is expected to be between 35 cents and 38 cents a diluted share. Wall Street analysts polled by First Call had forecast a loss of 17 cents per share.

A plan to sell the database business recently fell through and the company is moving forward with plans to split its B2B and database operations into different companies, said Goldman, whose long-term outlook remains positive.

eXcelon, formerly known as Object Design Inc., is slated to report fourth-quarter results on Feb. 15.

Its shares closed down 7/16, or 14 percent, to $2-11/16 on the Nasdaq