Israeli shares are down as a trading frenzy hits Wall Street. The Nasdaq has fallen 3%, to its lowest point since December of 1998. The Down Jones has also fallen 0.6%.

Gilat Satellite Networks (nasdaq:GILTF) has plummeted a massive 33% to $21. The stock's crash follows a profit warning, announced earlier by Gilat's management. Gilat predicts its 2001 revenues will only reach $575 million, which is 15% lower than forecast by Goldman Sachs. Earnings per share in 2001 are only expected to reach $1, which falls 60% short of analyst's forecasts. Investors are expected to closely follow the share, especially since Gilat is likely to announce its completion of a financing round worth $100-$150 million for its home satellite Internet project, Starband.

Mercury Interactive (Nasdaq:MERQ) has slid 6% despite a recommendation from Lehman Brothers. The share has lost 76% of its value since the beginning of the year.

Floware Wireless Systems (Nasdaq:FLRE) is also expected to rouse investor interest, after announcing its new OEM agreement with the Chinese company Datang Telecom Technology. Floware is to supply the Chinese with broadband wireless communication systems. Datang has given a commitment to purchase equipment worth $60 million from Floware, which it will in turn supply to Chinese communication providers over the next two years.

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Naftali Idan, Sr. VP, CFO of Floware told today that the possibility of Floware supplying communication equipment to Eurocom's Ofek is dwindling. According to press reports, it seems we will not be taking part in the project. The chance of us supplying Ofek with the equipment is now close to nil, he said.

Only a month ago Idan had seemed hopeful that Floware would be Ofek's main wireless access equipment supplier. However, it now seems likely that Nortel Networks (Nasdaq:NT.TO) will be awarded the contract. Nortel has a product specifically developed for GHz 26 frequencies, while Floware offers a product for the Ghz 3.5.