Dutch navigation device maker TomTom cut its 2008 revenue outlook this morning and warned price cuts would hit first quarter sales and profits.
The company said quarterly sales would fall year-on-year for the first time since the company went public in 2005, sending the stock to a 32-month low.
Its €2.9 billion euro ($4.56 billion) bid for digital map maker Tele Atlas remains on track, TomTom said.
The Amsterdam-based firm now expects first quarter sales of €260 million to €270 million ($409-$425 million), well below an average forecast of €347 million from analysts polled by Reuters Estimates.
Analyst forecasts range from €290 million to €418 million for the figures, which are due on April 23rd.
Revenue in the same quarter a year earlier was €296 million.
The Amsterdam-based firm said its operating margin would fall to a low single-digit percentage from 19 percent a year earlier.
Shares in TomTom were down 10 per cent at €23.79 at 9.14am after hitting 22.58 euros, their lowest since July 2005. TomTom went public at €17.50 per share in May 2005.
A weak first quarter would mean full-year 2008 revenue of between €1.8 billion and €2 billion, TomTom said, cutting a projection of 2 billion - €2.2 billion made in February.
Analysts on average expect revenue of €2.17 billion.