Lithium-ion battery maker A123 Systems (NASDAQ:AONE) saw its shares fall more than 12 percent on the Nasdaq this morning, after revising its revenue guidance for the year downwards on lower orders from one of its customers.
For the full year 2011, the company now expects revenues in the range of $165 to $180 million, way down from its initial forecast of between $210 to $225 million.
Shares of A123 tumbled over 12% early Friday afternoon, to trade at $3.1 as of 12:02pm ET.
The reduction in full-year revenue guidance will be reflected principally in the fourth quarter, the company said, due to "unanticipated developments" from one of its automotive clients.
"While we continued to increase our production ramp in the third quarter, we are adjusting our 2011 revenue expectations due to an unexpected reduction in orders for battery packs from Fisker Automotive for the fourth quarter as it balances inventory levels from all suppliers," said CEO David Vieau.
"Our relationship with Fisker remains strong, and we expect that this reduction in volume is temporary as we understand the Karma plug-in hybrid electric vehicle has received EPA certification as well as an all-electric range rating of 51.6 miles from the European regulatory body Technischer Ueberwachungs Verein (TUV), clearing the way for vehicles sales.
"We are executing a plan that we believe will manage costs in the near term while allowing us to maintain the manufacturing and operational capabilities required to quickly ramp up production."
The newest projected revenue range still represents between 70 to 85 percent growth from 2010.
A123 develops and manufactures advanced Nanophosphate lithium ion batteries and systems, which are used in electric and hybrid vehicles, as well as consumer electronics, military and aerospace applications.
The company will release its third quarter financial results for the period ending September 30 before markets open on November 9.