Financial analysts had predicted a loss of 10 to 17 cents because the company had fared poorly the previous quarter, said analyst Steve Shepich, at Olde Discount Corp. in Detroit. "It's not as bad as anticipated," Shepich said. "Their core business, which declined 25% last quarter, may be stabilizing, but it's not like their problems are over with."

One of those problems, he said, is that the company's revenue isn't growing. FileNet expects to report second-quarter revenue of $62.5 million, compared with last year's second-quarter revenue of $65 million and net income of $2.5 million, or 15 cents per share.

Including onetime charges for restructuring, The Costa Mesa, Calif.-based company expects to report a second-quarter net loss of $3.8 million, or 25 cents per share, the company said. During the first quarter, the company suffered a net loss of $9.4 million, or 63 cents per share.

Shepich said the recent hiring of former IBM executive Lee Roberts as first president and chief operating officer will help FileNet. "He's got a strong marketing background, and marketing execution has been one of the problems they've been having," Shepich said. FileNet expects to announce final financial results on July 23.