After Spreadtrum Communications Inc. (NASDQ:SPRD) reported lower earnings and higher expenses, the semiconductor company's small cap stock fell sharply.
At the end of the day on Thursday, Spreadtrum reported its net income dropped to $21 million, or 41 cents per share, in the second quarter of 2012, compared with a total income of $32.5 million, or 60 cents per share, in the same period of 2011.
This came in lower than analysts' expectations, which called for earnings of 46 cents per share, according to Bloomberg.
The firm's revenue did rise by 8.1 percent to $173.1 million, compared with $160.2 million in the first quarter, topping analysts estimates for total income to be $172.7 million. Sales of Spreadtrum's 2G and 2.5G chip products increased by 52.1 percent, while sales of its 3G semiconductors increased by 22.5 percent compared with the same period last year.
However, the average selling price of each chip was down more than 20 percent compared with last year.
Together, these factors led the stock to fall 12.1 percent to $17.01 as of 3:44 pm on Friday, August 10.