IndigoVision, a Scottish firm specialising in electronic security systems, has warned that it expects profits for this year to fall below last year.
The Edinburgh-based company said sales of its surveillance equipment were down in North America, southern Europe and the Middle East.
This was mainly because of reduced investment by casinos and hotels.
However, it had seen strong growth in Latin America.
It has also had good sales in the UK, northern Europe and Asia.
The firm recently won business installing a monitoring system at Delhi Airport in India and rail systems in Brazil and Canada.
Police and prisons have now replaced casinos as the strongest performing sector.
IndigoVision issued a trading statement saying estimated turnover for the year to the end of July were 6% higher than last year's record levels, at £28m.
But it said that with sales margins being squeezed by changes in its sales profile, operating profits for the whole of 2010 were expected to fall below those in 2009.
IndigoVision was set up in 1994, and has a presence in 23 countries, with partners selling its equipment in 76 markets.