Wireless Sector Plunges as Bad News Keeps Building

Wireless stocks and the companies that make products for the sector were hurting in late afternoon trading, following Motorola's (MOT Quote) 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 Quote), 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 Quote) was down 85 cents, or 6.1%, to $13. Qualcomm (QCOM Quote) 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 Quote) slid $1.49, or 6.6%, to $21.07. Triquint Semiconductor (TQNT Quote) fell $1.49, or 8.1%, to $17, while Anadigics(ANAD Quote) was off 65 cents, or 4.9%, to $12.65. Alpha Industries(AHAA Quote) sank $1.12, or 4.5%, to $24.05. Texas Instruments (TXN Quote) 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.