Gemalto (GTOMY)  continued to fall on Thursday following a surprise profit warning from the Dutch digital security company due to the slow adoption of the chip-and-pin payment method in the U.S. 

The company on Wednesday announced a steep cut to its 2017 guidance for sales just weeks after it reiterated guidance in its full-year results.

It said that fourth-quarter revenue will be between 7% and 9% lower and that revenue from its payment business will be some €100 million ($108 million) lower for the full year. This is equivalent to 10% of total payment services revenues and translates into a €40 million reduction in Ebitda.

"This update primarily reflects a double-digit decline in Gemalto's assumption for the payment cards total available market in the U.S. due to EMV card inventory levels at their customers in the first semester," Gemalto said on Wednesday.

The shares fell by a further 4.5% after the opening bell, to change hands as low as €49.85, bringing total losses for the last two days to more than 20%.

"The timing and magnitude of the guidance cut surprised us," said Jean Beaubois, an analyst at Berenberg, adding the timing came as a shock given that it had reiterated its guidance during its full-year results three weeks ago. 

Gemalto has become the latest victim of the failed rollout of EMV payment technology in the U.S., which is otherwise known as chip-and-pin payment technology. So far it has proven to be slower and less efficient for retailers than the swipe methods and is already being eclipsed by new technology such as contactless cards.

The announcement also prompted a sharp rout in the share price of Ingenico (INGIY) , a French rival in the field of payment hardware and security technology, which has seen its own EMV offering struggling to gain traction in the U.S. during recent quarters. The stock fell nearly 5% on Wednesday.

Berenberg's Beaubois said that the successful take up of contactless payment technology in Europe but particularly in the U.K., where more than half of all transactions are carried out using contactless, bodes well for take up in the U.S. and suggested that Gemalto's position as a leader in smart card reader technology will mean it is able to capture a meaningful piece of the pie.