NEW YORK ( TheStreet) -- Shares of Mindspeed Technologies ( MSPD) tumbled in Wednesday's extended session after the Newport Beach, Calif.-based communications chip maker gave a disappointing revenue forecast because of weak demand from wireless customers.

The company said it expects revenue of $40.5 million for the three months ended Dec. 31, slightly below its Nov. 1 outlook of $41.2 million, and short of the average estimate of analysts polled by Thomson Reuters for revenue of $43.3 million.



The stock was last quoted at $5.96, down 8.3%, on volume of around 200,000, according to Nasdaq.com. The shares rose more than 15% in 2010, bouncing off a 52-week low of $3.56 to finish the year at $6.10.

"We experienced a weaker demand environment in the fiscal first quarter of 2011, primarily related to our legacy wide area networking business, specifically from a few, large wireless communications customers," said Raouf Halim, the company's CEO, in a statement.

Halim added, however, that he believes the demand environment has now stabilized and that "customers appear to be making good progress absorbing systems inventory built up during the supply constrained environment of the last few quarters."

Wall Street's consensus estimate is for earnings of 13 cents a share from Mindspeed in the November quarter, and the company said it expects its non-GAAP gross margins and operating expenses to be consistent with its prior outlook.

Five of the seven analysts covering Mindspeed's stock have either strong buy (4) or buy (1) ratings, and the median 12-month price target sits at $10, implying upside of more than 60% from current levels.

Ruby Tuesday

Ruby Tuesday ( RT) was on the rise after Wednesday's closing bell, gaining 2.6% to $14.37 on volume of around 150,000, after the company reported a strong quarterly profit.

The Maryville, Tenn.-based casual restaurant operator said it earned $4.6 million, or 7 cents a share, in the three months ended Nov. 30, up from a year-ago equivalent profit of $400,000, or a penny per share, and well ahead of the average estimate of analysts polled by Thomson Reuters for earnings of a nickel per share.

It was the ninth straight quarter that Ruby Tuesday topped Wall Street's expectations for its quarterly results. The stock closed the regular session at $14.01, up 9 cents, on volume of around 785,000, ahead of the issue's trailing three-month daily average of 530,000, and the shares are coming off a stellar 2010 when they appreciated more than 80%.

Going into the report, five of the eight analysts covering Ruby Tuesday were at either strong buy (2) or buy (3), but the stock was bumping against Wall Street's median 12-month price target of $14.63.

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