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Downgrade sends Proxim shares south

The company's shares tumble 24 percent after Morgan Stanley Dean Witter cuts the company from an "outperform" rating to "neutral."

Proxim shares tumbled 24 percent Tuesday after Morgan Stanley Dean Witter cut the company from an "outperform" rating to "neutral."

Shares in the wireless products maker tumbled $10.31, or 24 percent, to $32.69 by market close. Earlier, shares touched a low of $28.13.

First Call consensus expects Proxim to earn 16 cents a share in its fourth quarter. Last quarter, it raked in $3.7 million, or 13 cents a share, on sales of $29.3 million.

Proxim sells wireless networking products to consumers and businesses, allowing laptop owners to work untethered in the home or office, for example. The company competes with 3Com, Lucent Technologies, Cisco Systems and other network equipment makers.

Proxim's shares rose to a 52-week high of $88 in March before falling to a low of $28.50 in May. Eleven of the 12 analysts following Proxim rate it either "buy" or "strong buy."

News.com's Wylie Wong contributed to this report.