ORANGE COUNTY

State of the Art’s Stock Price Falls Sharply: State of the Art Inc.’s stock price plunged 29% to an all-time low Friday after the Irvine company announced that its earnings and revenue during the third quarter would likely be below analysts’ expectations. The accounting software maker’s stock fell $2 to $4.75 a share in over-the-counter trading Friday. The plunge came after State of the Art said that it changed its product upgrade strategy because of the slowing economy, a move that would likely cut into its financial performance. Instead of requiring its distributors to upgrade State of the Art software when new modules to the basic package are issued, the company said it decided to allow waivers of the upgrade fees for an unspecified period of time because of competitive pressures. Geri Schanz, spokeswoman for the firm, said analysts had expected State of the Art to report third-quarter revenue of $5.3 million and earnings per share of 12 cents. She said the company does not expect to meet those projections.