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NEW YORK (

TheStreet

) -- Shares of

SMSC

( SMSC) fell in extended trading Tuesday after the Hauppage, N.Y.-based chip maker disappointed Wall Street with its third-quarter outlook.

The company forecast non-GAAP earnings of 42 to 43 cents a share on revenue of $104 million to $107 million for the three months ending in November. The current average estimate of analysts polled by

Thomson Reuters

is for a profit of 45 cents a share in the current quarter on revenue of $106.4 million.

For the second quarter ended August 31, SMSC beat the consensus EPS view by 9 cents with non-GAAP earnings of $11.5 million, or 51 cents a share, on revenue of $104.1 million. The company's expectation for a sequential decline in its non-GAAP gross margin to 56% in the third quarter from 57.4% in the second quarter may be what is spooking investors most.

The stock was down 7.7% to $20.75 in afterhours action on volume of more than 82,000. Based on their close at $22.48 in Tuesday's regular trading, the shares were up 4.4% year-to-date, but had pulled back since reaching a 52-week high of $27.85 in mid-April.

Another big decliner after the closing bell was

ModusLink Global Solutions

(MLNK)

, which reported a fiscal fourth-quarter loss of $25.8 million vs. a year-ago equivalent loss of $4.1 million and gave a tempered outlook for fiscal 2011, saying it expects revenue for the first quarter to be flat with its fourth-quarter total of $228.1 million.

"Looking at fiscal 2011, we expect that our clients will remain cautious about managing their supply chain and we expect to experience similar economic-related factors that influenced our financial performance over the past two quarters," said Steven Crane, the company's CFO, in a statement.

The stock was off 11.1% to $6.42 on volume of a little less than 40,000 in extended trading. So far in 2010, the shares were down more than 23% based on Tuesday's regular session close at $7.22.

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Seeing the heaviest volume to the downside was

Green Mountain Coffee Roasters

(GMCR)

, which disclosed

regulators are looking into its revenue recognition policies

.

Shares were recently changing hands at $31.98, down 13.6%, on volume of nearly 2 million.

Advancing after the bell was

Geron Corp.

(GERN) - Get Geron Corporation Report

, up more than 4% to $5.67 on volume of 58,000. There didn't appear to be any specific news on the Menlo Park, Calif.-based biotech; although the company is

attending at a Brazilian scientific conference on stem cells

starting tomorrow through Oct. 2.

--

Written by Michael Baron in New York.

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Michael Baron

.

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