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SDT shares drop 30 percent

Security Dynamics Technologies plummets more than 30 percent in early trading after warning that its results for the first quarter of 1998 will fall short.

Security Dynamics Technologies (SDTI) plummeted more than 30 percent in early trading today after it said that its results for the first quarter of 1998 will fall short of the company's operating plan.

SDT stock closed the day down 15-9/16, at 26-15/16.

Excluding the results of its acquisition of Intrusion Detection last week, the developer of security products said earnings for the quarter were expected to come in at 14 cents per share, compared with 12 per share reported for the same period last year. Its revenue for the first quarter increased 37 percent, to about $39 million, from $28.4 million for the first quarter of 1997.

The company did not disclose what it expects results to be once the acquisition charges are accounted for.

Analysts had expected profits of 19 cents a share, according to First Call.

SDT attributed the shortfall to its failure to close certain sales that had been expected for the quarter.

Security Dynamics acquired Intrusion Detection, a creator of software that monitors networks for intrusions by hackers, in an all-stock deal worth $32.5 million.