NEW YORK (TheStreet) -- VisionChina Media (VISN) couldn't escape the tidal wave of crashing Chinese equities. Shares of the provider of digital mobile television advertising dropped nearly 14% to $7.40.
Silicon Motion Technology(SIMO) - Get Report, a provider of semiconductor chips for consumer electronics and mobile devices, fell more than 11% to $29.31, although it remains a strong buy according to survey of Zacks analysts and said quarterly revenue would be at the upper end of its guidance.
Chinese indexes have been plummeting after reaching an all-time high earlier this year. Some Chinese companies appear to have felt the impact of the sharp decline.
VisionChina Media manages a network of roughly 100,000 television screens on mass transit systems -- buses and subways - in 19 major Chinese cities. The company provides such content as entertainment programming, stock prices, weather and traffic reports. The company has been intent on building China's largest public mass transit Wi-Fi network.
But cutbacks in advertising tied to the sluggish Chinese economy hit the firm. Revenue for the company's first quarter ended March 31 (and reported June 4) fell 30% year over year. That stemmed from a decline in mass transit ads. In a press release accompanying the earnings report, the company's CFO Stanley Wang emphasized VisionChina's cost-containment efforts and said that the firm "expected a strong rebound in the second quarter."
"Additionally, with the transition to our "Mobile Internet + TV Media" platform, we are exploring new growth opportunities to realize the unique value of our core advertising business in our local markets," Wang said.
Silicon Motion Technology said it expected revenue to increase 7% to 9% for its second quarter, on the high side of the 5% to 10% that it predicted in late April.
The company manufactures handset transceivers and mobile TV IC solutions, products that are widely used in smartphones, tablets, and industrial and commercial applications. It also provides microcontrollers used in solid state storage devices.
Earlie this month, Silicon Motion Technology announced that it had completed the acquisition of Shannon Systems, a Chinese provider of flash-based systems and devices. Silicon Motion Technology said that it expected the purchase to add $14 million to $18 million in revenue.