Motricity, Cree: After-Hours Trading

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.

Cree

Shares 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.

"Q4 results were in-line with our targets and we are encouraged by the 11% sequential growth in quarterly revenue," stated Chuck Swoboda, the company's chairman and CEO, in a statement, adding later: "As we look ahead to Q1, demand has improved from earlier in the calendar year and we are well positioned to continue to lead the LED lighting revolution."

Based on Tuesday's close at $29.49, Cree shares were down nearly 60% so far in 2011, putting its forward price-to-earnings multiple at 18.9X.

Walt Disney

Walt Disney ( DIS) shares were down in late trades despite a strong earnings report from the Dow component.

The media and entertainment company said it earned $1.48 billion, or 77 cents a share, in its fiscal third quarter ended in June on revenue of $10.68 billion, up 7% from year-ago levels. Excluding restructuring and impairment charges totaling $34 million mainly related to its Studio Entertainment unit, Disney posted a profit of 78 cents a share in the latest quarter.

The performance bested the average estimate of analysts polled by Thomson Reuters for a profit of 73 cents a share in the June-ended period on revenue of $10.46 billion.

"Our third quarter demonstrates the continued strength of our Media Networks, including ESPN, Parks and Resorts and Consumer Products," said Robert Iger, the company's president and CEO, in a statement. "In these turbulent times, our company and its array of strong brands are well-positioned to deliver long-term shareholder value."

The stock closed Tuesday at $34.70, up 5%, on volume of 31.8 million, nearly three times the issue's three-month daily average churn of 11.6 million. At that level, the shares were down 6% in the past year, and more than 20% since hitting a 52-week high of $44.34 on March 4.

In after-hours action, the shares dipped 41 cents, or 1.2%, to $34.29, according to Nasdaq.com, with volume reaching 1.1 million.

Demand Media

Shares of Demand Media ( DMD) were volatile late Tuesdsay after the Web content provider delivered an above-consensus quarterly profit, renewed a global advertising agreement with Google ( GOOG), and announced a pair of acquisitions.

The stock was last quoted at $8.65, down 3.6%, on volume of around 96,000, according to Nasdaq.com. Earlier in the after-hours session, the shares ran as high as $10.75. The company went public in late January at $17 per share, and the shares ran as high as $27.38 on April 6 before selling off on concerns about how business might be impacted by a change in Google's search algorithm.

After the closing bell, Demand Media posted an adjusted profit, excluding items, of $5 million, or 6 cents a share, for its fiscal second quarter ended June 30. Revenue excluding traffic acquisition costs rose 34% year-over-year to $76.6 million in the quarter.

The average estimate of analysts polled by Thomson Reuters was for 5 cents a share in the June period on revenue of $73.9 million.

"We posted another strong quarter, driven by significant year-over-year growth in both our Content & Media and Registrar businesses as we continued to enhance our content library with new talent, video, and feature articles," said Richard Rosenblatt, the company's chairman and CEO, in a statement. "We plan to build on this momentum by expanding our brand advertising relationships and accelerating our content platform's international and social media growth initiatives."

Demand Media didn't provide financial details of the new three-year deal with Google, which extends existing ad management arrangements between the companies and calls for Demand Media's properties to be included "in premium, brand-safe channels within Google Display Network Reserve."

The company also announced deals to acquire RSS Graffiti, a Los Angeles-based developer of social media products; and IndieClick, an online advertising company also headquartered in Los Angeles.

-- Written by Michael Baron in New York.
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