Catapult Communications Corp. stock fell Wednesday after the company warned that a shortfall in orders for its digital-communication test systems would push third-quarter revenue below expectations.

Shares of Catapult fell $1.60, or 12 percent, to $11.55 in morning trading on the Nasdaq Stock Market. Shares traded as low as $11.39, below the 52-week low of $11.73 set April 4.

Tuesday, after the financial markets closed, the Mountain View, Calif.-based company lowered its revenue estimate for the quarter ending June 30 to between $10.7 million and $11.7 million from its previous forecast of $12.8 million.

Telecommunications-equipment makers and service providers use Catapult's test systems to design, test and configure network elements.

Analysts were expecting third-quarter revenue of $13 million, according to Thomson Financial.

Catapult reported revenue of $14.3 million a year ago.

J.P. Morgan analyst Paul Coster said he believes the order shortfall originates in Japan. The rest of the company's international and domestic business "is meeting expectations, and management believes underlying growth drivers are solid," the analyst said in a research report.

Buoying the company is an order backlog valued at $5 million and deferred revenue of $11 million, Coster said.

J.P. Morgan makes a market in Catapult's securities. It also expects to receive or intends to seek compensation from the company in the next three months for investment-banking services. An affiliate of the investment bank has received compensation in the past 12 months for providing Catapult with non-investment banking services.

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