Shares in Baltimore Technologies slumped to their lowest level in two and a half years yesterday as investors sold technology stocks on US and Europe exchanges.

Baltimore, which recently announced details of a £30 million£35 million (#38 million-#44 million) cost-cutting plan shedding 250 jobs, closed down almost 20 per cent at 46 pence sterling in London.

The company's shares have been savaged following two recent profit warnings and are nowhere close to the £15 high achieved last year during the peak of the technology boom.

Analysts said the sell-off was prompted by several earnings warnings from technology firms and fears that Baltimore may not have enough cash to bring it through to profitability.

Earnings warnings from US network equipment maker, Juniper, and two chip-equipment makers, Varian Semiconductor and DuPont Photomasks, sparked heavy selling on the Nasdaq and European bourses.

Mr Barry Dixon, technology analyst with Davy Stockbrokers, said Baltimore was also hit by ongoing concerns that it may not have enough cash reserves to get it through to profitability.

"People are waiting to see whether Baltimore will implement the cost-cutting plan they have announced," he added.

A technology analyst based in London said Baltimore's heavy fall could be a delayed reaction to "more aggressive" restructuring moves by US rival Entrust Technologies.

The US security software developer said last week it would cut about 400 jobs in a bid to reduce costs and return profitability by the end of the year.

An announcement that Baltimore had released its next-generation access and authorisation solution, SelectAccess 3.0, did nothing to prevent the slide in its shareprice.

Several other Irish technology companies were hit by heavy selling yesterday. Dublin-based chip design firm Parthus fell almost seven per cent in London to close at 85.5 pence.