Light emitting diode (LED) designer Dialight (LON:DIA) said revenues for the first quarter exceeded expectations but warned it has suffered from a recent reduction in orders.
The company said it has been hit a slowdown in the lighting segment in both the US and Europe since April.
The board believes the reduction is linked, in part, to a slowdown in the oil and gas sector.
Broker Northland Capital said: “Slowdown in the rate of orders since April’s AGM statement in the Lighting segment in both the US and Europe is likely to result in a shortfall in full year revenue.”
As a result, underlying operating profit is likely to be significantly below expectations, and the first half 2015 is expected to be below the previous year’s £6.5mln.
The company confirmed that in light of the poor financial performance, chief executive Michael Sutsko is leading a strategic review of the business.
Sutsko said: “This review will focus will on the markets in which the group currently operates, together with an attendant review of its operations, supply chain, and product development.”
Shares dropped 269p or 36% to 476p today.