Mindspeed, Ruby Tuesday: After-Hours Trading

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.

ARM Holdings

Shares of ARM Holdings edged up after the close on news that its chip designs have received the stamp of approval from Microsoft ( MSFT).

The stock was last quoted at $22.14, up 1.2%, on volume of roughly 125,000, according to Nasdaq.com. The advance comes with the stock sitting right around its 52-week high after more than doubling in 2010.

Microsoft said said the next-generation of its Windows operating system will work with the "system on a chip" designs of ARM, a rival of longtime Microsoft partner Intel ( INTC).

ARM's semiconductor architecture has become dominant in mobile devices, including smartphones and tablet computers, and Microsoft's decision underscores its increased commitment to being competitive in the smartphone space.

-- Written by Michael Baron in New York.

>To contact the writer of this article, click here: Michael Baron.

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Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.

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