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Sector Watch

Wireless Sector Plunges as Bad News Keeps Building

Chris Frankie

09/06/01 - 04:02 PM EDT

Wireless stocks and the companies that make products for the sector were hurting in late afternoon trading, following Motorola's (MOT) warning that third-quarter revenue would fall short of expectations.

The wave created by Motorola followed the splash made by earlier this week by Ericsson (ERICY), when the Swedish company offered a gloomy outlook for the wireless market through 2002.

Shares of Motorola were getting crushed, falling $2.40, or 14.6%, to $14 in afternoon trading. Nokia (NOK) was down 85 cents, or 6.1%, to $13. Qualcomm (QCOM) was off $3.31, or 6.2%, to $49.90 and Ericsson fell 15 cents, or 3.7%, to $3.92.

Makers of the equipment for the wireless industry weren't faring any better. RF Micro Devices (RFMD) slid $1.49, or 6.6%, to $21.07. Triquint Semiconductor (TQNT) fell $1.49, or 8.1%, to $17, while Anadigics (ANAD) was off 65 cents, or 4.9%, to $12.65. Alpha Industries (AHAA) sank $1.12, or 4.5%, to $24.05. Texas Instruments (TXN) was also on the downside, skidding $1.54, or 5%, to $29.30.

On Thursday, Motorola said third-quarter revenue would be flat with the prior three months. The company previously expected a 5% top line increase. The company forecast a loss of 5 cents to 8 cents a share, wider than previous predictions, and set plans to cut 2,000 additional jobs.

Brokerage Partners