NEW YORK ( TheStreet) -- Shares of MIPS Technologies (MIPS) were among the biggest percentage decliners in extended trading on Tuesday after the Sunnyvale, Calif.-based chip maker fell short of Wall Street expectations with its fiscal third-quarter results and gave a disappointing outlook.
The company, whose processors are used in digital set-top boxes, DVD recordable devices, network routers and other products, reported non-GAAP earnings of $4.7 million, or 9 cents a share, on revenue of $20 million for the three months ended in March.
The average estimate of analysts polled by
Thomson Reuters was for a profit of 10 cents a share in the March period on revenue of $21.7 million. The company, which is making a big push into mobile handsets and tablets using the Android operating system, said the performance was at the low end of its prior guidance, and attributed the weakness to a number of deals in the pipeline not closing in time.
The stock was last quoted at $9.40, down 12%, on volume of more than 500,000, according to Nasdaq.com. Based on a regular session close at $10.68, the shares have more than doubled in the past year. At the same time, 2011 has been volatile with the stock hitting its 52-week high of $18.19 on Jan. 14 then tumbling more than 40% ahead of Tuesday's report.For its fiscal fourth quarter ending in June, MIPS said on its conference call that it expects non-GAAP earnings of 5 to 8 cents a share on revenue ranging from $19 million to $21 million, below the current consensus estimate for a profit of 9 cents a share on revenue of $21.1 million. The outlook for the full year is for pro forma earnings of 44 to 47 cents a share on revenue of between $84 million and $86 million. The five analysts covering MIPS' shares were overwhelmingly bullish ahead of the report with three rating the stock as a strong buy, and one each at buy and hold.