FileNet Earnings Drop

COSTA MESA —  FileNet Corp. said Thursday that it expected its fourth-quarter profit to drop substantially, to about 20 cents a share from 32 cents a share last year while revenue should climb slightly.

Sales and earnings were hurt by “a number of prospects and customers either delaying their orders or, in some cases, reducing the size of their orders late in the quarter,” said Ted Smith, president and chief executive officer of the Costa Mesa-based data management systems company.

For the year, FileNet expects profits of about 82 cents a share, compared with 83 cents a share in 1995. Revenue for the year, Smith said, should climb to about $269 million from $229 million last year. FileNet said it will release final earnings Feb. 6.