Updated from 10:41 a.m. ET

Novoste

(NOVT) - Get Report

said it would report a narrower loss than analysts' are expecting for the first quarter, but the stock plummeted after the company said a clinical trial to expand the uses of its Beta-Cath system didn't produce the desired results.

Novoste was hoping to find that the system could prevent the re-clogging of arteries treated with stents, but the Beta-Cath didn't meet the main objectives of the trial.

Shares of Novoste lost $12.25, or 42.1%, to $16.88 in recent

Nasdaq

activity, after trading as low as $13 today.

Additionally,

Salomon Smith Barney

cut its rating on the medical device company to outperform from buy and lowered its 12-month price target to $31 from $70.

Novoste, which is based in Atlanta, said it would lose between 50 cents and 54 cents a share in the first quarter, which ends March 31.

First Call/Thomson Financial

polled 13 analysts, who expect Novoste to lose 57 cents a share.

The company also expects to report revenue of $7.5 million to $8.5 million for the period, up from the Wall Street consensus estimate of $5.6 million. Novoste will report first-quarter results April 25.