Shares of



fell sharply after the company confirmed market fears by lowering its third-quarter revenue forecast by more than 15% because of a contract delay with



TheStreet Recommends

, its largest OEM.

The Colorado-based provider of storage network solutions now expects sales of $93 million to $95 million, compared to a previous forecast of $107 million to $112 million. The Thomson First Call consensus is for sales of $109.8 million.

McData shares were recently down 80 cents, or 8%, to $9.10 in premarket trading.

The company will report third-quarter results on Dec. 1 after the markets close.

McData said it failed to reach agreement on terms with EMC in October in time for orders to be included in quarterly earnings. The development

had been anticipated by an analyst at RBC Capital Markets last Thursday, pressuring the shares then.