Trident Microsystems (TRID) shares are taking a hit after the TV-focused chip company warned that Q4 revenues will be down sharply from the third quarter.
For Q3, the company posted revenue of $176.6 million, up from $171.6 million in Q2, and $31.1 million a year ago. On a non-GAAP basis, the company broke even in the quarter.
For Q4, Trident expects revenue to retreat to a range of $130 million to $140 million; it expects a non-GAAP operating loss of $4 million to $8 million.
CEO Sylvia Summers said Q3 results were in line with guidance. But she added in a statement that the expected decline in the foruth quarter reflects “both industry softness and share loss from supply constraints earlier in the year,” partially offset by a modest increase in the company’s set-top box business.
Summers added that the company expects TV industry softness to continue into the first quarter. She added that the company expects 2011 revenue to be similar to 2010, with positive cash flow for the year.
TRID is down 32 cents, or 15.2%, to $1.79.
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