Gilat Satellite Networks (Nasdaq:GILTF) stock lost more than one-third of their value on Wednesday. On Tuesday the Israeli maker of earth-based satellite transmission equipment slashed its third-quarter revenue projections due to the postponement of deals after the Sept. 11 attacks in the United States.

The Petah Tikva-based company's shares were down $2.02, or 37.6%, at $3.36 in heavy afternoon Nasdaq trading.

Gilat cut its estimate for the quarter to "more than $80 million" from an August forecast of $150 million and said it expects to take several charges.

Salomon Smith Barney on Wednesday lowered its rating to "neutral" from "outperform," and analyst Armand Musey said he will be reviewing his estimates for Gilat.

"While the charges will be non-cash in nature," he wrote in a research note, "we note that Gilat could be facing a liquidity crunch as it had $87 million in cash at the end of second-quarter 2001 and does not appear cash flow positive at current revenue levels."

Gilat was not immediately available for comment.

The company said it will record noncash charges, including $80 million primarily related to impaired goodwill, $70 million for inventory, $57 million for investments and leases related to customers and a bad debt reserve of $10 million. Gilat also said it will record a restructuring charge of about $30 million.

After the charges, Gilat said it expects a loss of about $267 million, or $11.40 a share. Wall Street analysts on average have been expecting the company to post a third-quarter profit of 22 cents a share before such charges, according to Thomson Financial/First Call.

For the fourth quarter, Gilat said it projected revenue near $90 million, down from a previous estimate of $200 million, and a net loss of $10 million, or 43 cents a share.

The current First Call estimate for the period is a profit of 62 cents a share.