Updated from 5:46 p.m ET to include latest prices, information on Motricity and Cree.
NEW YORK ( TheStreet) -- Shares of Motricity (MOTR) were crushed in Tuesday's after-hours session after the Bellevue, Wash.-based provider of mobile Internet services fell well short of Wall Street's expectations for its quarterly results.
The company cited "headwinds" in its North American carrier business, increased competition in international markets, and a later than anticipated closing of its Adenyo transaction.
The stock plunged 50% to $2.23 with volume exceeding 1.3 million, according to Nasdaq.com.Motricity said it lost $4.3 million, or 9 cents a share, in the June-ended period on revenue of $34.6 million. On an adjusted basis, the company earned $2 million, or 4 cents a share, in the quarter. The average estimate of analysts polled by Thomson Reuters was for earnings of 9 cents a share on revenue of $37.1 million. The company also took down third-quarter expectations dramatically, saying it expects a loss on an adjusted basis with revenue ranging from $31.5 million to $32.5 million. "The Company's outlook for the third quarter has been impacted by new competitive dynamics in the international markets, continuing lower levels of North American carrier professional services work and lower managed services revenue, partially offset by accelerating mobile marketing and advertising revenue growth," said Motricity, which also withdrew its outlook for the year, adopting an extremely cautious tone about both the economy and the competitive pressures it sees in the marketplace.
CreeShares of Cree (CREE) gained nearly 10% in late trades to $32.32 on volume of nearly 500,000 after the LED lighting products company delivered an above-consensus profit for its fiscal fourth quarter. Durham, N.C.-based Cree reported non-GAAP earnings of $30.6 million, or 28 cents a share, for the three months ended June 30 on revenue of $243 million. That's down from year-ago equivalent earnings of $60.1 million, or 55 cents a share, but ahead of the average analysts' view for a profit of 27 cents a share on revenue of $233.1 million. For the first quarter, the company sees non-GAAP earnings of 25 to 28 cents a share on revenue of $245 million to $255 million. That's below the current consensus view for a profit of 31 cents a share on revenue of $253 million.
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