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Shares of

Mobility Electronics

( MOBE) fell sharply Friday after the power adapter manufacturer lowered third-quarter revenue guidance and offered a lowered sales outlook.

Mobility Electronics expects total revenue for the third quarter to range between $24.1 million and $24.3 million. The average analyst estimate calls for $26.9 million in revenue, according to Thomson First Call data.

The revision reflects the negative impact of a $2 million shortfall in the intelligent cradle business, due to lower-than-expected sales to the pharmaceutical field trials industry and a $1.2 million shortfall in sales of universal power adapters for portable computers to Targus.

Mobility said Targus is looking to reduce inventory held in its supply chain pipeline and sales to Targus will trend lower in the fourth quarter before likely returning to historical ordering patterns in early 2007.

In addition, Mobility Electronics cautioned on the future viability of its deals with

Dell

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and

Energizer Holding

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.

Mobility expects its program to supply combination AC/DC power adapters for portable computers to Dell to continue through the fourth quarter, but the current program will likely terminate shortly after year-end.

The company expects that sales to Dell will trend lower towards the end of the fourth quarter as the program winds down.

Mobility does not expect to generate material, if any, revenue going forward through its relationship with Energizer.

"New management at Energizer has chosen to focus on alternative strategies for the battery-powered adapter market rather than the previously planned program with Mobility," Mobility Electronics CEO Charles Mollo said. "As a result, we no longer expect to pursue this market in collaboration with Energizer.

"Although we are disappointed that our current relationships with Dell and Energizer aren't likely to contribute meaningful, if any, revenue in 2007, we will continue to pursue the markets served by these two customers with a variety of approaches," Mollo said.

Shares of Mobility Electronics were recently trading lower by $2.07, or 38.5%, to $3.28 Friday.