It was bound to happen. Clarity International, after busting prospectus forecasts and posting better than expected results last financial year, has succumbed to the slump in demand for telco software that is crippling providers around the world.

Clarity, whose spectacular October 2000 stockmarket debut earned it the title of best-performing float for the 2001 financial year, warned on Friday of a surprise $5.5 million loss for the December half.