Gemalto warned on Wednesday that its first-quarter revenues will be between 7 to 9 per cent lower compared to the same period of 2016.
The firm blamed weak sales in its US payment business for the revenue shortfall. Payment card revenue for the full year 2017 is estimated to be around €100 million lower than its initial expectation.
Looking ahead, and taking into account the first-quarter trend, Gemalto now expects its 2017 profit from an operations outlook to be at a similar level to 2016.
Gemalto is currently reviewing its action plan to minimise the impact of much lower than expected EMV card and associated service sales. The firm is due to report first-quarter revenue on 28 April, at which point it has promised to update the market on its revised business plan.
Shares in Gemalto fell more than 18 per cent to €51.45 on the profit warning.
Gemalto is the world's biggest supplier of SIM cards. It also offers smart cards and tokens, and managed services. ®