Spreadtrum shares tumble after weak 2Q forecast

U.S.-traded shares of Spreadtrum Communications Inc. sank Thursday after the Chinese technology company posted second-quarter results below Wall Street's expectations and gave a weak sales forecast for the current quarter.

American Depositary Shares of the Shanghai-based company fell 94 cents, or 21.2 percent, to close at $3.50. Earlier, the stock hit a 52-week low of $3.17.

Late Wednesday, Spreadtrum, which makes wireless chipsets, called the quarter "challenging." Its earnings of 6 cents per ADS fell a penny short of Wall Street's expectations; revenue was also slightly below analysts' projections.

The Chinese consumer market, said President and Chief Executive Ping Wu, was hurt by events including a major snowstorm that disrupted travel and consumer spending around the time of the Chinese New Year, flooding in southern China as well as May's massive earthquake in the country.

Company-specific problems include a product delay and a slower-than-expected transition by customers to new Spreadtrum's new products.

"As a result of these factors, we expect (the third quarter) to be a very challenging transition quarter for us," Wu said in a statement.

The company forecast revenue of $20 million for the current quarter, down 50 percent sequentially and well below the $45.3 million analysts are expecting.