Shares of Arqit Quantum fell after the company said geopolitical disruptions in the Middle East would drag its revenue down in the second half of its fiscal year.

The stock fell 16% to $18.91 in Thursday afternoon trading. Shares are down 14% year to date.

The quantum-safe encryption software provider on Thursday said it expects to report revenue for the six-month period ended Sept. 30 of between $355,00 and $380,000. That compares with revenue of $463,000 for the same period a year earlier.

The company said it was unable to recognize revenue from one contract with a Middle East customer during the back half of the fiscal year. "The customer's ability to fulfill its contractual obligations has been impacted by, but not limited to, geopolitical events in the region," the company said.

Revenue for the full fiscal year is expected to be between $975,000 and $1 million, up from $530,000 in the previous fiscal year.