Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: The bottom fell out of MIPS Technologies (Nasdaq: MIPS) this morning as shares of the consumer electronics chipmaker plummeted more than 26% in early trading after reporting weak results and an even weaker outlook last night.

So what: Promises of outsized Android-fueled profits and stealing share from peer ARM Holdings (Nasdaq: ARMH) haven't materialized. MIPS reported $20 million in fiscal third-quarter revenue and $0.09 in adjusted per-share profit. Analysts had been calling for $21.7 million and $0.10 a share, respectively, Reuters reports.

Now what: While the Q3 numbers weren't great, it was the guidance that really got to investors. MIPS reduced its full-year revenue target from $85-$88 million to $84-$86 million. Management also anticipates an 8-10% decline in Q4 royalty revenue, Reuters says.

It's to early to tell if MIPS will fail to live up to my own rosy expectations. But I wouldn't buy at current prices. There simply isn't enough evidence of MIPS winning revenue-generating business from Google's (Nasdaq: GOOG) Android community.

Fool contributor Tim Beyers is a member of the Motley Fool Rule Breakers stock-picking team. Both our Rule Breakers and Motley Fool Inside Value services have recommended members purchase shares of Google. You can try any of our Foolish newsletter services free for 30 days.

Tim owned shares of Google and MIPS, and MIPS covered calls, at the time of publication. Check out his portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. You can also get his insights delivered directly to your RSS reader. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool is also on Twitter as @TheMotleyFool. Its disclosure policy is at least 10% better than other disclosure policies.