This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Sirf Tech's Loss Steepens

Stocks in this article: SIRF

SAN FRANCISCO -- Sirf Tech (SIRF) posted a wider loss in the third quarter, as sales at the chipmaker fell sharply.

The San Jose, Calif., company said revenue in the three months ended Sept. 27 decreased 34% sequentially and 67% year-over-year to $60.1 million.

Sirf said sales were affected by continued competitive pressures as well as weakness in demand because of the global economic uncertainty.

The company posted a loss of $20.9 million, or 34 cents a share, vs. a loss of $16.1 million, or 28 cents a share at this time last year.

The company's gross profit margin declined to 42.7% compared with 49.3% in the year-ago period, and some of Sirf's operating expenses actually increased slightly during the quarter, even as sales plummeted.

Shares of Sirf fell 5%, or 5 cents, to 90 cents in extended trading Wednesday, down dramatically from the 52-week high of $30.61.

Once a leading maker of the GPS chips used in personal navigation devices, Sirf has fallen upon tough times as new players such as Broadcom (BRCM) and Qualcomm (QCOM) have entered the market and driven down prices for its chips.

Meanwhile, the market for the personal navigation devices that use GPS chips is under pressure. On Tuesday, Garmin (GRMN), the world's No.1 maker of PNDs said that sales in the fourth quarter will be about $300 million less than it previously expected.

Sirf didn't immediately provide a specific financial forecast Wednesday other than to say that its new products are showing good "design win traction," but that the company continues to be cautious in its outlook due to challenging competitive and economic conditions. The company is scheduled to hold a conference call with analysts Wednesday.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,030.21 +6.04 0.03%
S&P 500 2,081.88 -0.29 -0.01%
NASDAQ 4,773.4720 +8.0480 0.17%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs