BCE Emergis (TSE:IFM)shares tumbled more than 40 per cent Thursday after it warned that some expected first quarter revenues had not materialized, prompting the company to forecast a loss of between $25 million and $30 million for the quarter.

By the close of trading, BCE Emergis had plunged $11.64 to close at $15 – a new 52-week low for the stock. In fact, BCE Emergis shares haven't been this low since January 1999.

"We are disappointed in the quarter but we will take the necessary steps to deliver growing profitability," BCE Emergis chief executive Brian Edwards said in a release.

Lowered expectations at BCE and BCE Emergis

The e-commerce company said it will present a cost reduction plan and provide financial guidance for the rest of the year within two weeks.

A company spokesperson said layoffs are likely. The company currently employs 2,600 people.

BCE Emergis forecast its first quarter total revenues to be in the range of $128 to $138 million and expects to post a $17 million to $22 million operating loss.

Final Q1 results will be reported April 23.

In January, the company reported a fourth quarter net loss of $101.3 million, or $1.03 per share, on revenues of $181.4 million. In the same quarter of the prior year, the company lost $72.8 million or 78 cents per share on $141.0 million in revenues.

Emergis warning prompts reduced guidance at BCE

BCE (TSE:BCE)Thursday lowered its earnings guidance for the first quarter because of the problems at its BCE Emergis subsidiary.

Previously, BCE was guiding analysts to expect a profit of 37 to 40 cents per share for Q1. Now, it's guiding 3 cents lower – to a range of 34 to 37 cents a share.

BCE shares dropped on that news, falling 78 cents to close at $32.47.