Shares in Xaar PLC (LSE:XAR), the inkjet printing technology group, fell 22% in early trading after the company said the outlook for next year was "challenging".
Investors gave little credence to the fact the current-year adjusted profit was likely to be ahead of forecast at £2.5 million to £3 million.
Rather, they priced in Xaar's warning of continued weak demand and delays in customer product launches.
At 9.20 am, the shares were changing hands for 136.5p, down 40p.