UK small caps fall 0.3 percent in early trade, outperforming biggerfalls by the mid caps <.FTMC, down 0.5 percent, and the blue chips, off0.6 pecent.
E2V Technologies drops 19.5 percent in heavy volumes after warningthat revenue for the six months to end-March would be "approximately half thatpreviously expected", citing deferred orders.
"E2V's interim management statement is disappointing and leads us todowngrade our FY2013 earnings per share expectations by 18 percent due to acombination of delayed orders, deferred contracts and technical problems,impacting revenue growth rates and subsequently profits," Investec Securitiessays in a note, cutting its target price for E2V to 160 pence from 190 pence.
On the flip side, miner Gem Diamonds adds 2.4 percent afterforecasting a rise in sales this year and saying it has seen an improvement inoverall rough diamond prices.
Reuters messaging rm://antonina.vorobyova.thomsonreuters.com@reuters.net