Shares in power control components manufacturer XP Power plunged 10% after group revenues for the last three months of 2011 contracted 5% compared to 2010.
The firm, also said it expects further revenue contraction in the first quarter of 2012.
The poor result came despite a 13% rise in revenues for the year as a whole. The company's North American business was the worst hit.
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In a statement, the firm, which is still set to pay a final dividend of 11p, said: "Design wins in 2011 have continued to be positive and we are pleased with the further headway that has been made in achieving approved or preferred supplier status at new key accounts, but increased macroeconomic uncertainty will present a challenging environment as we enter 2012.
"Bookings in the last quarter of 2011 from existing programs were soft and customers are generally cautious and are delaying orders.
"As a supplier to manufacturers of capital goods, we cannot expect to be immune from the effects of lower global end-market growth, nevertheless, the group is well positioned to respond to these more difficult markets and to continue to take market share."
XP's debt levels rose from £18.4m to £19m year-on-year.
Stock broker Investec kept its buy rating and 1,300p target on the stock today.
The share price fell 10.95% to 833.5p by 13.20p by 13:05.
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