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.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis -- even one of our own -- helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.