Shares of Xplore Technologies (TSE:XPL)got hammered on Tuesday after the company issued a significant revenue warning for its third quarter and revealed that it would have to restate its financial results for the first two quarters.

Xplore, which makes wireless computers designed to work in rugged environments, said Monday it now anticipates Q3 revenues of $2 million US to $3 million US, about a fifth of the $12 million US to $15 million US it had told analysts to expect.

That news helped send the stock down by more than two-thirds at the start of trading on Tuesday. At the close, the stock was down $1.60 at $1.20 on the TSE a drop of 57 per cent.

Xplore blamed its dramatic fall-off in revenues on Sept. 11 and "slower than expected implementation of the company's product in the public safety market."

The company said it made no sales to any customers in the Middle East in the quarter. It had anticipated $5 million US to $8 million US in Middle East sales.

Xplore also said it would have to restate its revenue figures for the first six months of its 2002 fiscal year - lowering the total value by $2.9 million US.

Xplore said the company and its auditors have determined that "certain sales of the company's products during those periods should not have been included in its consolidated revenues under Canadian generally accepted accounting principles."

What's more, the company also revealed that it's owed $3 million US by an unnamed Middle East customer. It says if it can't collect, it may need to further reduce its reported revenues and receivables for the nine months ending Dec. 31, 2001.

Xplore will issue its third quarter results Feb. 6.