Cello's share price has fallen 14.8% since Friday's close to 33.35p, as at 11.30am today.
On average analysts are expecting Cello to report a pre-tax profit of £7.52m on revenues of £80.47m on March 17, according to Reuters Estimates.
Cello said it is "realistically cautious about the current outlook", observing that clients have indicated their intention to maintain their expenditure levels.
In its trading update today, it added that its net debt will come in at less than £10.5m, significantly below expectations, due to strong cash conversion in the second half of 2008.
However the company has managed to increase its revolving credit facility from £18m to £20m for 2009.
Cello has also confirmed acting non-executive chairman Allan Rich has now been appointed on a permanent basis. Rich joined on September 2 to help steer the company while executive chairman Kevin Steeds took medical leave. Steeds passed away in December.