Shares in Baltimore Technologies fell sharply yesterday on foot of a profit warning from its US peer company, Entrust.

Investors stripped the value of shares in security software maker, Entrust, by more than half following news it would miss second-quarter profit projections by 75 per cent. On the London stock exchange Baltimore shares fell from 530p to as low as 480p finally settling seven per cent down at 492p. In the US shares fell $1.87 1/2 to close at $14.62 1/2.

Baltimore moved quickly yesterday to seek to reassure shareholders by issuing a statement from chief executive officer, Mr Fran Rooney. "Baltimore Technologies' business continues to grow and we are experiencing no negative change in sales cycle timing, order closure or sales pipeline growth," he said.

Entrust said it expects to post second-quarter earnings of two cents a share when it reports its results on July 18th, versus a consensus analysts' estimate of 8 cents a share carried by First Call/Thomson Financial.

Entrust, which is a spin-off of Nortel Networks, said its revenues were reduced because of delays in closing deals, not lost business.

"The issue here is simply revenue timing, not lost business," said Entrust chief executive, Mr John Ryan.

Baltimore said it remains confident it will still be performing in line with management expectations when it announces its second quarter results in early August.