Graeme Wearden and David Meyer
July 06, 2006, 14:15 BST
UK-based Newport Networks alarmed the City after revealing that its efforts to sell its VoIP hardware to a major telco have stumbled
Shares in UK network equipment manufacturer Newport Networks plunged by over 50 percent on Wednesday after the company revealed that a key deal with a major telco was proceeding slower than expected.
Newport was founded by UK telecoms billionaire Sir Terry Matthews. It makes a product called the 1460 session controller, which can be used in large telecoms networks to underpin Voice-over-IP (VoIP) services.
In a statement released to the stock market, Newport revealed that it had not, as previously expected, secured a deal with a major "tier one" telecoms operator. Back in early June, Newport had indicated that this agreement would be finalised before July.
In its announcement, Newport also admitted that it had "experienced procurement delays with other large next-generation network projects"