Shares in Gemalto have taken a tumble after the French firm revised revenue forecasts sharply downwards due to a sluggish take-up of EMV cards in the US.
In a trading update, the firm said its revenues would fall up to nine percent behind previous forecasts, wiping $100 million off anticipated turnover from its payment business.
"This update primarily reflects a double digit decline in our assumption for the payment cards total available market in the United States due to EMV card inventory levels at our customers in the first semester," Gemalto states. "This situation also leads to a lower contribution from personalisation services."
Markets reacted furiously to the news, wiping EUR1 billion off its valuation as the stock price tumbled by nearly a quarter.
Taking into account the first quarter trend, Gemalto now expects its 2017 profit from operations outlook to be at a similar level to 2016.
The company says it is "reviewing its action plan to minimize the impact".