Liberate Sales Fall Short of Expectations

Liberate Technologies Inc., a San Carlos, Calif., maker of interactive-television software, said fourth-quarter sales lagged forecasts because the cable TV industry spent less. Sales in the period ended May 31 were $20 million to $21 million, excluding certain items. Liberate had estimated sales of $25 million to $25.5 million.

Liberate’s software lets subscribers connect to the Internet from TV sets and order movies on cable. The company said cable network operators put off the introduction of digital services. The company said it still expects to report a loss of 6 cents a share before some costs, based on a preliminary review. Liberate plans to issue final quarterly results June 2.

Its shares fell 17%, or 60 cents, to $2.97 on Nasdaq, its lowest close since the company’s IPO in July 1999.