Shares in Irish Internet security specialist Baltimore Technologies plunged 20 per cent today after it warned of first-quarter revenue shortfalls for the second time in three weeks.
In morning trade, the stock was down 18p at 74p, close to its all-time low of 57p reached early this month.
Baltimore revised its £25 million revenue forecast for the quarter to £23.7 million, on the back of unexpected deferred customer orders. A spokesman for the company said the deferred orders mainly came from European clients.
The £25 million forecast announced at the end of March was in itself a shortfall on the £30 million expected by analysts.
Baltimore said customers got cold feet following its March statement, which warned of challenging trading conditions as a result of the US-led global economic slowdown.
Baltimore said it expected the deferred deals to be closed during the current quarter. However, some analysts threw doubt on this optimism.
"I think there may be further bad news. They're talking about deferrals of contracts, we think they'll actually be cancellations," said Ms Jemma Houlihan, equity analyst at ABN Amro in Dublin. We're seeing that across the sector, she added.
The company also said it was undertaking an operational review, but did not give details as to what this would entail.
Analysts warned that this hinted at cost cutting, which could entail hefty one-off charges for the group, further undermining its finances.
Baltimore shares took a knock in March after the company warned of challenging trading conditions. The shares continued to decline throughout March to hit an all-time low in early April. A marginal recovery during the month led the shares to close on Wednesday at 92 pence.
The stock has underperformed the London stock exvchange's computer services sector by nearly 70 percent over the past year.