Shares in British software company Autonomy lost more than half their value in early trade this morning after it said customers were delaying orders as the US economic slowdown spread to Europe.
"Some 20 multinational companies suddenly deferred signing contracts worth a total of more than $10 million in the last two weeks of the first quarter," chief technology officer Mr Richard Gaunt said today.
Autonomy shares, which hit a peak of £41.50 in November dived as much as 59 per cent to £2.32 this morning.
It is the first time a major European software company has said the US slowdown has crossed the Atlantic.
"A lot of the external views are that there's a mild slowdown, but as far as we're concerned this is a sign of a very sharp, sudden recession globally," Mr Gaunt said in an interview.
"It was absolutely incredible just how across the board this phenomenon was. The world is on hold for a quarter. It's quite possible the world is on hold for another quarter," he added.