STOCKWATCH: Vtech Holdings sharply lower in London trade after profit warning

LONDON (AFX) - Vtech Holdings Ltd saw its market cap almost halved in midmorning trade as it warned that it expects to post hefty losses in the year to March 31, dealers said.    At 10.08 am, shares in Vtech, which is listed in Bermuda and in London, fell 20 pence, or 42 pct, to 27-1/2 pence -- the largest decliner within the Small Caps.    Since its November update, Vtech said trading in most of its core businesses have deteriorated significantly, with the telecommunications business suffering substantial losses.     Its electronic learning products, information appliances and other electronic products have also not improved significantly since that date.    As a result, Vtech expects to record a "substantial operating loss" for the year to March 31.    Vtech blamed the expected losses on several exceptional items, which are currently estimated at 133 mln usd.    These include the acquisition on March 31 2000 of Lucent Technologies Inc's consumer wired telephone business, certain non-recurring operating losses, consolidation and restructuring costs.    Vtech will also be impacted by adjustments to certain intangible assets, including goodwill and know-how.    Further out, however, Vtech believes the Lucent business will stage a turnaround after certain restructuring measures are put in place.	

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