Mindspeed lowers 2Q product revenue forecast
Mindspeed Technologies lowers its 2nd-quarter product revenue forecast; stock price tumbles
NEWPORT BEACH, Calif. (AP) -- Chipmaker Mindspeed Technologies is lowering its fiscal second-quarter product revenue forecast because of slower-than-expected deployments of 3G small-cell base stations.
Its stock fell sharply in midday trading on Wednesday.
Small-cell technologies help deliver a signal over a shorter range, which gives mobile users a faster, more consistent voice and data experience.
Mindspeed Technologies Inc. said that it now expects product revenue between about $35.1 million and $35.5 million. It previously predicted product revenue would be about flat to up or down 2 percent from the first quarter's $38.4 million, which implied a range between $37.6 million and $39.2 million.
The company said that revenue from 4G/long-term evolution cell base stations is projected to approximately double from the first quarter.
Looking ahead, Mindspeed predicts third-quarter product revenue will be about flat when compared with the second quarter. Wireless infrastructure revenue is also expected to be roughly flat with the second quarter.
The Newport Beach, Calif. company anticipates second-quarter wireless infrastructure revenue of about $2.6 million to $2.7 million.
Mindspeed is set to report second-quarter financial results on April 30.
The company's stock declined 36 cents, or 12 percent, to $2.65. Over the past year, the shares have traded in a range of $2.31 to $6.39. For the year to date, the stock started the session down 35.7 percent.
