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.
AmazonShares of online retailing giant Amazon (AMZN) ticked 1% lower to $180.48 on volume of 4.7 million on Tuesday after the company missed the average analysts' profit view for its latest quarter by a wide margin.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV