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What: Shares of semiconductor specialist Mindspeed Technologies
So What: You'd never know it based on the stock's action today, but results for Mindspeed's fourth quarter were actually better than expected. Total revenue was $58 million versus an expectation of $53 million and per-share profit was $0.46, well ahead of the $0.31 expectation.
Now What: It was the outlook for the upcoming quarter that slaughtered shares today. Management sees ongoing revenue -- that is, excluding patent sales -- dropping 8% to 10% while gross margins contract. Patent sales are also expected to be significantly lower during the quarter, so on the whole investors will see a pretty hefty profit drop-off. After this report, Mindspeed looks to have its work cut out winning back investors.
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