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Sigmatel Selloff

The stock drops as numbers come in weak.

SigmaTel (SGTL) shares swooned 9% as the company warned of a big sales shortfall.

The Austin-based portable music chipmaker says a slow transition to new chipsets and design delays will likely cause a first-quarter loss of 50 cents a share on sales of about $32.5 million.

Analysts had been looking for a 9-cent loss on sales of $54.5 million for the quarter ending this week, according to Reuters Research.

"Several factors have negatively impacted the company's results for the first quarter," said CEO Ron Edgerton.

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The company says it made some management changes, including naming Phil Pompa the new head of its portable systems group.

SigmaTel shares fell 93 cents to $9.20 in after-hours trading Wednesday.