Nice Systems Issues Profit Warning, Loses Half of Market Cap

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Shares of

Nice Systems

(NICE) - Get Report

plummeted today after the company said fourth-quarter earnings would fall well short of Wall Street's expectations, blaming the downward revision on weakness in the telecommunications and information technology sectors, as well as postponed orders from customers.

The stock fell $22.56, or 50.5%, to $22 in recent

Nasdaq

trading.

Nice said it expects to post a loss of up to 6 cents a share for the period, but, at best, could break even on a per share basis, excluding acquisition-related charges. The company earned 56 cents in the year-ago period. Seven analysts polled by

First Call/Thomson Financial

are calling for the company to earn 58 cents in the quarter.

Nice, a developer of multimedia digital recording software and services based in Ra'anana, Israel, said revenue should be $39 million to $40 million for the fourth quarter.