| Tech Stock News and Analysis |
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| Friday, June 30, 2006 |
| Shares of Palm (PALM) were among technology's losers Friday, sliding 12% after the maker of handheld computer devices posted solid fourth-quarter results but gave a weaker-than-expected projection for the first quarter. For the three months ended May 31, the company earned $27.2 million, or 25 cents a share, on revenue of $403.1 million. Excluding items, the company earned $30.6 million, or 29 cents a share. Analysts polled by Thomson First Call expected earnings of 23 cents a share, before items, on revenue of $401.7 million. During the year-earlier period, Palm earned $17.7 million, or 17 cents a share, on revenue of $335.8 million. Excluding items, year-earlier earnings were $19.2 million, or 19 cents a share. Palm sees first-quarter adjusted earnings of 18 cents to 19 cents a share, below analysts' forecast of 22 cents. The company projects revenue of $380 million to $385 million, compared with analysts' projection of $413.4 million. Shares were trading down $2.10 to $16.56. Saba Software (SABA) plunged 23% as investors were disappointed with the software company's fourth-quarter results and first-quarter guidance. For the period ended May 31, the company reported a loss of $3.5 million, or 12 cents a share, on revenue of $23.1 million. The results included one-time items that lowered earnings by 16 cents a share. A single analyst expected the company to earn 7 cents a share on revenue of $23.5 million. During the year-earlier period, the company recorded a loss of $572,000, or 3 cents a share, on revenue of $12 million. Looking ahead, Saba sees a first-quarter loss of 11 cents to 14 cents a share, including one-time items that will cut earnings per share by 16 cents. The company anticipates revenue of $22 million to $23 million. The single analyst forecast calls for earnings of 9 cents a share, with revenue of $22.1 million. Shares were trading down $1.60 to $5.35. Shares of RSA Security (RSAS) soared 19% after the seller of identity and access-management systems agreed to be acquired by EMC (EMC) for nearly $2.1 billion in cash, or $28 a share. The price tag represents a 22% premium to Thursday's closing price of $22.88. On Thursday, shares of RSA jumped 18% ahead of the official acquisition announcement. On a pro forma basis, the acquisition is expected to be neutral to EMC's earnings during 2007 and accretive to earnings by 3 cents a share during 2008. The deal is expected to close during the late third quarter or early fourth quarter. Shares of RSA were trading up $4.36 to $27.24, while shares of EMC dropped 80 cents, or 7%, to $10.45. Airspan Networks (AIRN) plummeted 36% after the wireless-networking equipment company said a supply contract with one of its biggest customers to deliver $42.9 million of WiMax equipment was amended. Under the new agreement with Japan's Yozan, some $16.8 million in equipment that had been delivered against cash payments will be considered accepted. However, 40% of the remaining deliveries will be delayed. What's more, the deliveries are subject to revised payment terms. Airspan also said the remaining deliveries are subject to mutually satisfactory renegotiation and could be cancelled. Because the company and its independent auditor are still in the process of assigning a fair value to the Yozan Tri Band contract, Airspan said may still not be able to record any of the $16.8 million in products shipped during the second quarter to Yozan. "If no such revenues are recorded, Airspan's second quarter revenues are likely to be consistent with its first quarter results, as it expects to deliver $24 million of products and services to its other customers," the company said. Airspan posted revenue of $23.8 million during the first quarter. Analysts are projecting second-quarter revenue of $39.1 million. Shares were trading down $1.31 to $2.36. Shares of Qiao Xing Universal Telephone (XING) tumbled 18% after the telecom-products company posted lower first-quarter earnings, as results were weighed down by options costs. The company's earnings from operations fell to $2.1 million from $5.9 million a year earlier. Revenue rose to $84.1 million from $71.1 million. Without stock-based compensation costs, Qiao Xing said it would have earned $9.4 million during the most recent period. Shares were trading down $2.21 to $10.04. Other technology movers included Level 3 Communications (LVLT) , up 9 cents to $4.19; Microsoft (MSFT) , up 5 cents to $23.52; Intel (INTC) , down 28 cents to $19.04; Cisco Systems (CSCO) , down 13 cents to $19.78; Oracle (ORCL) , up 8 cents to $14.82; Apple Computer (AAPL) , down $1.51 to $57.46; Sun Microsystems (SUNW) , down 3 cents to $4.11; JDSU (JDSU) , down 3 cents to $2.40; Applied Materials (AMAT) , down 19 cents to $16.36; Lucent Technologies (LU) , down 1 cent to $2.44; and Nortel Networks (NT) , down 3 cents to $2.25. |
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| Thursday, June 29, 2006 |
SAN FRANCISCO (Reuters) - Handheld computer and phone maker Palm Inc. (NasdaqNM:PALM - ) on Thursday forecast weaker- than-expected results for the current quarter, sending shares down more than 9 percent.
At the same time, Palm reported net income that rose 53 percent, helped by strong sales of its Treo mobile phone.
Palm has decided to stop selling its Treo 650 in Europe phone after June 30 because it is not compatible with a new phone technology standard used there, Chief Executive Ed Colligan on a conference call, in explaining the lower-than- expected forecast.
"We felt like the product was long in its life cycle," Colligan said. "It's something that's a transition issue that we have to deal with."
Palm, which one year ago was still going by the name PalmOne, said net income rose to $27.2 million, or 25 cents a share, for the fiscal fourth quarter from $17.7 million, or 17 cents a share, in the year-ago period.
Excluding special items, the profit was 29 cents a share.
On that basis, analysts, on average, had expected a profit of 23 cents a share, according to Reuters Estimates.
Revenue rose 20 percent to $403.1 million. Analysts had expected revenue of $405.4 million.
Colligan said it was working to introduce a model in Europe to replace the Treo 650 "as fast as we possibly can," but he did not specify a date for its introduction.
Competition in the so-called smart phone market is heading up, as rival Motorola Inc. (NYSE:MOT - News) started selling its Q earlier this month and Nokia (NOK) launched the E61 in April.
"When categories grow, you can expect new forays into that space," Colligan said.
Shares of rival Research In Motion Ltd. (NasdaqNM:RIMM ), which has about 75 percent of the smart phone market, rose 5.7 percent to $69.84 in extended trading, after Palm reported.
For the current fiscal first quarter, Palm expects to earn between 18 cents and 19 cents a share, excluding one-time items. That is below analysts' average forecast of 22 cents a share, according to Reuters Estimates.
Including items, Palm forecast quarterly earnings of 13 cents to 14 cents a share.
Revenue for the quarter is expected to be between $380 million and $385 million, below the current Wall Street expectation of $412.4 million.
Palm shares were down 9.3 percent at $16.92 in after-hours trading after closing at $18.66 on Nasdaq. In regular trading, the stock fell 1 cent. |
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Shares of Neoware (NWRE:Nasdaq) were among technology's losers Thursday, plummeting 42% after the software company warned that fourth-quarter revenue will be well below its prior forecast.
For the period ending June 30, Neoware expects revenue of $23 million to $24 million, or slightly higher. Previously, the company projected revenue of $29 million. Analysts polled by Thomson First Call project revenue of $30.7 million. For the full fiscal year, the company anticipates revenue of $107 million to $108 million, below analysts' target of $114.4 million.
"Revenues for the June quarter were impacted by lower-than-expected sales to certain existing customers in the U.S. and Europe during the last two weeks of the quarter," the company said. "Sales growth from new customers did not increase enough to offset these lower than expected sales to existing customers." Shares were trading down $8.48 to $11.71.
Merix (MERX:Nasdaq) jumped 12% after the maker of printed circuit boards posted better-than-expected fourth-quarter results and gave a strong projection for the first quarter. For the quarter ended May 27, the company earned $3.5 million, or 17 cents a share, on revenue of $100.4 million. Excluding items, Merix posted earnings of $3.9 million, or 19 cents a share. Analysts expected earnings of 14 cents a share and revenue of $94.3 million. A year earlier, the company posted an adjusted loss of $124,000, or a penny a share, on revenue of $51.6 million.
Merix sees first-quarter earnings of 31 cents to 35 cents a share, excluding stock-based compensation costs and amortization of intangibles. Analysts project earnings of 16 cents a share. Merix predicts first-quarter revenue of $102 million to $106 million, above analysts' forecast of $98.7 million. Shares were trading up $1.12 to $10.30.
Shares of Micron Technology (MU:NYSE) fell 7% after the chipmaker posted mixed third-quarter results. For the period ended June 1, the company earned $89 million, or 12 cents a share, above analysts' forecast of 10 cents a share. But Micron's revenue of $1.31 billion fell short of Wall Street's estimate of $1.37 billion. For last year's third quarter, the company posted a loss of $127.9 million, or 20 cents a share, on revenue of $1.05 billion. Shares were down $1.11 to $14.85.
ATI Technologies (ATYT:Nasdaq) fell 8% after the graphics-chip maker posted mixed third-quarter results and warned that fourth-quarter revenue would be lower than expected. For the period ended May 31, the company earned $31.9 million, or 12 cents a share. Excluding stock-based compensation costs and other items, the company earned $42.5 million, or 16 cents a share. Analysts expected earnings of 15 cents a share, before items. Revenue totaled $652.3 million, below analysts' projection of $661.3 million. During the year-earlier period, the company posted adjusted earnings of $11.1 million, or 4 cents a share, with revenue of $530.2 million.
For the fourth quarter, ATI projects revenue of $620 million to $660 million, below analysts' forecast of $698.4 million. ATI shares were trading at $14.23, down $1.27.
Shares of Silicon Image (SIMG:Nasdaq) jumped 13% after the chipmaker boosted its 2006 sales growth forecast. The company now sees sales growth of 25% to 30%, up from an earlier view of 20% to 30%. Analysts project full-year sales of $274.5 million, or sales growth of about 29%.
For the second quarter, Silicon Image expects sequential sales growth that will be at the high end of its previous guidance of 12% to 15%. During the first quarter, the company posted sales of $59.1 million. Analysts, meanwhile, project sales of $66.9 million, or sequential growth of about 13%. Shares were higher by $1.16 to $10.29.
Other technology movers included Microsoft (MSFT:Nasdaq) , up 25 cents to $23.41; Intel (INTC:Nasdaq) , up 17 cents to $18.83; JDSU (JDSU:Nasdaq) , down 5 cents to $2.40; Red Hat (RHAT:Nasdaq) , down $2.28 to $22.73; Oracle (ORCL:Nasdaq) , down 6 cents to $14.52; Cisco Systems (CSCO:Nasdaq) , up 4 cents to $19.42; Sirius Satellite Radio (SIRI:Nasdaq) , up 5 cents to $4.71; Sun Microsystems (SUNW:Nasdaq) , up 3 cents to $4.07; Apple Computer (AAPL:Nasdaq) , up 89 cents to $56.91; Nortel Networks (NT:NYSE) , up 4 cents to $2.20; EMC (EMC:NYSE) , down 20 cents to $11.05; Motorola (MOT:NYSE) , up 7 cents to $19.38; Nokia (NOK:NYSE ADS) , up 20 cents to $19.33; and Lucent Technologies (LU:NYSE) , up 3 cents to $2.38. |
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Red Hat Inc. (Nasdaq stock symbol RHAT), a distributor of open-source Linux software, reported an 11 percent increase in first-quarter net income on Wednesday, boosted by subscriptions from corporate customers.
But Red Hat's stock fell 5 percent in after-hours trading as the company said confusion over comparisons of the results to Wall Street estimates spooked investors.
Red Hat's net income rose to $13.8 million, or 7 cents per share, in the first quarter, ended May 31, from $12.4 million, or 7 cents per share, a year earlier. Revenue rose to $84.0 million from $60.8 million, a year ago.
Analysts, on average, had expected net income of 6 cents per share on revenue of $83.3 million in the first quarter, according to Reuters Estimates.
A spokeswoman for Red Hat said the company earned 14 cents per share, excluding stock-based compensation, in the first quarter based on a 5 percent tax rate. Wall Street analysts had expected net income of 9 cents per share, or $17.5 million, based on a different tax rate, the company said.
Dion Cornett, Red Hat's vice president of investor relations, said this makes an apples-to-apples comparison difficult and the confusion over the results was likely a reason investors drove down the company's stock.
"Investors want a simple story," he said. "Regardless of what we did, you know we have a complicated story and the initial reaction is not surprising."
Red Hat Chief Financial Officer Charlie Peters said the company gained market share from rivals during the quarter.
Red Hat estimated a tax rate of 37 percent of pretax income in the first quarter, but the company said once it takes deductions and accounts for tax credits, its cash tax rate will be 5 percent for the foreseeable future.
Red Hat provides update and support services for its version of Linux, which can be copied and modified freely, unlike proprietary software such as Microsoft Corp.'s Windows operating system.
Industry analysts said Red Hat continues to gain market share against Novell Inc. , a developer of networking software, while the company moves into new markets like small- to medium-sized businesses.
On a diluted basis, Red Hat's net profit rose to $14.7 million from $13.96 million a year earlier. These figures account for changes in interest and administrative expenses if its convertible bonds become stock.
The company also raised its fiscal 2007 revenue target to a range of $400 million to $405 million to reflect the recent acquisition of rival JBoss and stronger-than-expected business.
This was up from a previous forecast range of $370 million to $375 million and above the average Wall Street view for full-year revenue of $383.4 million.
Red Hat said in April it would acquire JBoss for at least $350 million in a deal analysts said would allow the company to offer a more complete set of software. JBoss specializes in middleware, the software layer that sits between the operating system and various applications.
JBoss will also add about $1.5 million per quarter in stock compensation expense and reduce gross margins by about 75 basis points mainly because the business generates more revenue from less-profitable services, the company said.
Shares of Red Hat have fallen nearly 13 percent since the company last reported quarterly earnings on March 28. During that same period, the Nasdaq fell about 8 percent.
Red Hat fell to $23.72 on the Inet electronic brokerage system in after-hours, from a closing price of $25.01 on Nasdaq. |
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| Wednesday, June 28, 2006 |
Palm to Pay Xerox $22.5M to Settle 1997 Patent Lawsuit
STAMFORD, Conn. -- Handheld computer maker Palm Inc. said Wednesday it would pay $22.5 million to Xerox Corp. to settle a patent infringement suit filed in 1997.
The dispute stems from a suit Xerox filed against a predecessor company to Palm Inc., charging that the handwriting-recognition technology sold as "Graffiti" and formerly used in some Palm devices infringed on a Xerox patent for a system known as Unistrokes. Palm replaced Graffiti with an updated system called Graffiti 2 in 2003.
The $22.5 million payment covers a fully paid-up license for three Xerox patents, including Unistrokes, Palm said. The two sides also agreed to "patent peace," or a seven-year mutual covenant not to sue within mutually agreed fields of use.
Palm said it would account for the license as a charge against earnings in its fiscal fourth quarter results.
Xerox said net proceeds of the payment would be mostly offset by costs related to the settlement of other legal matters.
Xerox shares rose 25 cents, or 1.9 percent, to close at $13.54 on the New York Stock Exchange. Palm rose 35 cents, or 1.9 percent, to finish at $18.67 on the Nasdaq. |
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Shares of Applied Micro Circuits (AMCC:Nasdaq) were among technology's losers Wednesday, falling 7% after the chipmaker said it received a subpoena from the U.S. Attorney for the Northern District of California related to its stock option practices.
Applied Micro said the subpoena requested documents related to the company's historical stock-option practices. In addition, the U.S. Attorney for the Southern District of California has opened an investigation into the company's option practices as well, Applied Micro said. The company, which previously announced that its audit committee is conducting a self-initiated review of its stock option-grant practices, said it doesn't expect to complete its review before June 29, the extended deadline to file its annual report with the Securities and Exchange Commission. As a result, the company has pushed back a special meeting of shareholders until July 28. Shares were recently trading down 18 cents to $2.44.
Palm (PALM:Nasdaq) fell 2% after the maker of handheld computer devices agreed to settle a patent-infringement suit with Xerox (XRX:NYSE) . As part of the settlement, which relates to a lawsuit that was filed by Xerox in April 1997, Palm agreed to pay Xerox $22.5 million for a license for three patents. Palm said that it would take a charge during the fourth quarter related to the license payment. Palm shares were trading down 37 cents to $17.95, while Xerox rose 6 cents to $13.35.
Rambus (RMBS:Nasdaq) shares tumbled 11% after the tech licensing company said it may need to restate prior periods' results due to discrepancies in stock option-award dates. Rambus also said it may need to record additional charges related to stock-option expenses for the periods. Shares were down $2.56 to $20.57.
Shares of Identix (IDNX:Nasdaq) rose 1% after the biometric technology company said it received $3.3 million in new orders for its TouchPrint enhanced-definition fingerprint and handprint scan systems. The orders, which were received over the past few weeks, are from federal agencies and state and local law enforcement agencies that are upgrading and expanding live scan networks, Identix said. The company said that it plans to recognize revenue from the orders during the next three months. Shares were trading up 7 cents to $6.70.
CTS (CTS:NYSE) fell 1% after the maker of electronic components announced a new five-year, $100 million revolving credit facility. The new unsecured facility also includes a $50 million accordion feature that will be used for general corporate purposes, CTS said. The $100 million revolver replaces the company's previous three-year, $75 million credit facility, which was scheduled to expire in July 2007. Shares were down 15 cents to $13.52.
Shares of Comverse Technology (CMVT:Nasdaq) rose 1% after the software company said a Nasdaq panel granted the company's request for continued listing. The panel said that Comverse must file its annual report by Aug. 18 and its quarterly report for the period ended April 30 by no later than Sept. 1. Comverse shares were up 29 cents to $19.42.
Other technology movers included Intel (INTC:Nasdaq) , up 47 cents to $18.52; Microsoft (MSFT:Nasdaq) , up 21 cents to $23.07; Sun Microsystems (SUNW:Nasdaq) , up 5 cents to $4.02; Sirius Satellite Radio (SIRI:Nasdaq) , up 3 cents to $4.60; JDSU (JDSU:Nasdaq) , down 10 cents to $2.35; Apple Computer (AAPL:Nasdaq) , down $1.61 to $55.82; Marvell Technology Group (MRVL:Nasdaq) , down $1.78 to $42.36; Cisco Systems (CSCO:Nasdaq) , down 11 cents to $19.19; Oracle (ORCL:Nasdaq) , up 2 cents to $14.52; and Lucent Technologies (LU:NYSE) , up 2 cents to $2.35. |
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Rambus, CNET Shares Plunge in Premarket After Firms Warn of Stock Option Investigations
NEW YORK -- Rambus Inc. and CNET Networks Inc. shares plunged ahead of the opening bell Wednesday after the tech companies warned profits might have been influenced by the timing of stock options granted to employees.
Both join a long list of companies that are reviewing past compensation practices. Rambus, a Los Altos, Calif.-based chip maker, and CNET, a San Francisco-based technology information provider, could be forced to restate past earnings because of their investigations. Foundry Networks Inc. also disclosed Tuesday it received a subpoena seeking more information about their stock option awards from the DOJ.
Dozens of technology companies have begun to scrutinize the way stock options are distributed to insiders. At the heart of these investigations is whether or not company insiders rigged the system to increase the likelihood management would reap huge windfalls.
Rambus tumbled $3.15, or 13.6 percent, to $19.98 in premarket electronic trading on the INET after closing Tuesday at $23.13 on the Nasdaq. The stock had traded as high as $46.99 in April.
CNET shares fell 51 cents, or 6.1 percent, to $7.86 in premarket activity, having closed at $8.37 Tuesday on the Nasdaq. The stock has traded within a 52-week range of $8.20 and $16.09.
Foundry Networks lost 32 cents, or 3.3 percent, to trade at $9.53 on the INET premarket, having closed Tuesday at $9.85 on the Nasdaq.
Biomet Inc. shares finally broke out of their slump after reporting fourth-quarter profit -- excluding charges -- in line with Wall Street expectations. The Warsaw, Ind.-based orthopedic device maker also told Wall Street it continues to make progress in a restructuring and executive shake-up of its EBI unit.
The stock has steadily declined this week after the Justice Department launched an antitrust probe of several major players in the industry, sending shares of those companies dramatically lower. On Tuesday, Biomet shares wobbled to a 52-week low of $31.16.
In premarket trading, Biomet shares rose $1.26, or 4 percent, to $32.45, after closing Tuesday at $31.19 on the Nasdaq. |
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| Tuesday, June 27, 2006 |
| TTWO shares moved lower Tuesday after the company said it received grand jury subpoenas requesting documents and relating to hidden scenes in Grand Theft Auto: San Andreas, as well as other issues. S&P kept its hold opinion on the shares, while CIBC World cut its rating to sector perform from outperform. |
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Shares of Take-Two Interactive (TTWO:Nasdaq) were among technology's losers Tuesday, plunging 18% after the software company received grand jury subpoenas from the District Attorney of New York County.
The subpoenas, which the company received June 19, seek documents covering periods as far back as October 2001. Take-Two said the documentation relates to a host of items, including the knowledge of the company's officers and directors regarding the creation of hidden scenes in the company's Grand Theft Auto: San Andreas, the submission of the game to the Entertainment Software Rating Board for a rating and the company's disclosures about the hidden scenes.
The subpoenas also seek information pertaining to disclosures and presentations by the company of certain events, including acquisitions, partnering arrangements and earnings results, Take-Two said. What's more, the district attorney also wants information related to Take-Two's invoices from, payments to, and termination of its former auditor, PricewaterhouseCoopers.
Take-Two said it's not been made aware of whether it or any specific individual is a target of the investigation. Meanwhile, the company said it's cooperating and providing all documentation requested. Shares were recently trading down $2.28 to $10.59.
Marvell Technology Group (MRVL:Nasdaq) slumped 14% after the company agreed to buy Intel's (INTC:Nasdaq) communications and application processor business for $600 million in cash. Intel has an option to receive $100 million of its compensation in Marvell stock.
"The planned sale will give Marvell a strong presence in the growing market segment for processors used in smart handheld devices," Marvell said in a press release. The acquisition is expected to close in four to five months. Shares of Marvell were trading down $7.28 to $44.62, while shares of Intel fell 4 cents to $18.24.
InFocus (INFS:Nasdaq) slid 17% after the maker of digital projectors warned that second-quarter revenue would fall short of expectations. The company said revenue would be less than the $112 million it reported during the first quarter. Analysts polled by Thomson First Call project second-quarter revenue of $122.1 million.
InFocus blamed the shortfall on a later-than-expected volume shipment of its new commercial products and lower-than-expected sales of one of its new products. Shares were trading down 63 cents to $3.10.
Micronetics (NOIZ:Nasdaq) jumped 24% after the maker of microwave and radio-frequency components posted big gains in fourth-quarter earnings and sales. For the period ended March 31, the company earned $942,110, or 19 cents a share, on sales of $8.6 million. During the year-earlier period, the company earned $476,957, or 11 cents a share, on sales of $3.7 million. The most recent quarter included results from Stealth Microwave, which was acquired in June 2005.
"We are pleased with our financial performance in fiscal 2006, and we anticipate continued growth in our high-performance power amplifiers and our commercial DBS programs in fiscal 2007," the company said. Shares were trading up $3.08 to $15.85.
Shares of Traffic.com (TRFC:Nasdaq) rose 7% after the online provider of real-time traffic information signed an agreement with Garmin International (GRMN:Nasdaq) .
The deal calls for Traffic.com to provide data to Garmin for use in its Garmin Mobile 20 GPS automotive navigation system. "By partnering with us and our unique mobile advertising network, Garmin will be able to provide our accurate, detailed traffic information as a free, standard feature," Traffic.com said. Shares of the company were trading up 28 cents to $4.30.
Other technology movers included Microsoft (MSFT:Nasdaq) , up 17 cents to $22.99; Sun Microsystems (SUNW:Nasdaq) , down 12 cents to $3.97; Oracle (ORCL:Nasdaq) , down 16 cents to $14.51; JDSU (JDSU:Nasdaq) , down 12 cents to $2.45; Sirius Satellite Radio (SIRI:Nasdaq) , down 10 cents to $4.60; Cisco Systems (CSCO:Nasdaq) , down 14 cents to $19.46; and Lucent Technologies (LU:NYSE) , down 4 cents to $2.37. |
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| Monday, June 26, 2006 |
Finisar wins $78.9 mln in patent case against DirecTV
Mon Jun 26, 2006 5:55 PM ET
June 26 - Communications equipment firm Finisar Corp.(Nasdaq FNSR) on Monday said it won $78.9 million in damages in a patent infringement case against satellite television company DirecTV Group Inc. .
The information transmission patent addresses ways to transmit and broadcast digital information to a wide base of subscribers and the method was invented by Finisar co-founder Frank Levinson, the company said in a statement.
The Sunnyvale, California-based company said the jury rendered its decision last Friday after a two-week trial and unanimously upheld the validity of the patent.
DirecTV said it will contest the jury's decision through post-trial motions or on appeal.
In a statement DirecTV said, "We believe the jury's verdict is wrong and represents a distortion of patent infringement law ... we believe evidence will ultimately show there was no infringement."
Shares of Finisar were up more than 2 percent at $3.37 in midday trading on the Nasdaq, and DirecTV rose 8 cents to $16.31 on the New York Stock Exchange. |
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Somera Communications (SMRA:Nasdaq) , a seller of equipment to telecom companies, saw its shares more than double after the company agreed to be acquired by Telmar Network Technology. Stockholders of Somera will receive $4.60 a share in cash from Telmar. The shares closed Friday at $2.06 and were lately surging $2.24, or 109%, to $4.30.
During the last year, Somera has traded in a range of $1.90 to $16.50. Somera said the combined firm will concentrate on providing the telecom market with reliable, high-quality and cost-effective products for network maintenance, expansion and asset management.
Nearly half of ACS Motion Control's (ACSEF:Nasdaq) market cap vanished on word the company has lost a big customer order. The maker of motion-control products was notified by one of its customers that, because of a redesign of its system, as of the fourth quarter it will no longer require the products that it had been purchasing.
The sales ACS will be losing accounted for 13% of its revenue last year and roughly 26% of the total in the first half of 2006. ACS said it plans to use "resources that will become available to increase its marketing efforts in an attempt to compensate for the loss of revenues." Shares of ACS sank $3.35, or almost 47%, to $3.84.
Finisar (FNSR:Nasdaq) rose 4% after the network-equipment company won $78.9 million in damages from DirecTV (DTV:NYSE) as part of a patent infringement lawsuit.
A jury in federal district court found that DirecTV and its affiliates were "literally and willfully infringing upon Finisar's information transmission patent," Finisar said in a press release. Shares of Finisar were recently trading up 12 cents to $3.41.
WPCS International (WPCS:Nasdaq) rose 3% after the company, which provides wireless-engineering services, signed a letter of intent to acquire Southeastern Communication Service for $1.8 million in cash and $1.4 million in stock. Southeastern posted 2005 revenue of $6.4 million and adjusted earnings before interest and taxes of $730,000. The company is expected to post 2006 revenue of $7.5 million and earnings before interest and taxes of $850,000.
"With the pending acquisition of SECS, we gain a company with a reputation for offering outstanding wireless engineering services to a highly visible customer base," WPCS said. Shares were trading up 23 cents to $7.64.
Other technology movers included Sirius Satellite Radio (SIRI:Nasdaq) , up 12 cents to $4.59; Microsoft (MSFT:Nasdaq) , up 29 cents to $22.79; Sun Microsystems (SUNW:Nasdaq) , down 10 cents to $4.08; Intel (INTC:Nasdaq) , up 23 cents to $18.23; Oracle (ORCL:Nasdaq) , down 32 cents to $14.58; Qualcomm (QCOM:Nasdaq) , up 57 cents to $40.07; Cisco Systems (CSCO:Nasdaq) , down 6 cents to $19.55; Apple Computer (AAPL:Nasdaq) , down 2 cents to $58.81; XM Satellite Radio (XMSR:Nasdaq) , up 23 cents to $3.69; JDSU (JDSU:Nasdaq) , down 2 cents to $2.59; and Lucent Technologies (LU:NYSE) , down 2 cents to $2.38. |
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Somera Communications accepts bid from Telmar
Mon Jun 26, 2006
NEW YORK, June 26 - Somera Communications Inc. on Monday said it had agreed to be acquired by Telmar Network Technology for $4.60 per share in cash.
The purchase price is more than double Somera's closing Nasdaq price on Friday.
The transaction, which is expected to close this year, will create a company focused on providing products and services for network maintenance, expansion and asset management.
SMRA shares are up $2.25 (109.33%) to $4.31 in early trading on Nasdaq |
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| Sunday, June 25, 2006 |
Report: Maxis Communications Bidding for Sri Lanka's Fifth Mobile Operator License
KUALA LUMPUR, Malaysia - Maxis Communications Bhd., Malaysia's biggest cell phone company by subscriber numbers, is bidding for Sri Lanka's fifth mobile operator license, a news report said Sunday.
Other bidders are believed to be Singapore Telecommunications Ltd. and India's Reliance Infocomm Ltd., said The Edge business weekly.
Their interest in Sri Lanka's market is indicative of operators' "desperation" to venture abroad, the paper said.
"There are only a few assets in markets with low mobile penetration which are for sale and this explains why even a fifth license in a country like Sri Lanka will be pursued," the report quoted an unidentified analyst as saying.
Sri Lanka had 3.3 million mobile phone users at the end of last year, with a penetration rate of 17.3 percent. There is also a lack of landline service in the country, which makes mobile services more attractive, the report said.
For Maxis, interest in Sri Lanka could also be due to the successful experience of its Malaysian rival, state-owned Telekom Malaysia Bhd., which owns 87.7 percent of Dialog Telekom Ltd.
Dialog was Sri Lanka's fourth mobile phone operator when Telekom Malaysia bought into it in 1995, but today it is in No. 1 position with nearly 60 percent market share.
Maxis officials could not be reached Sunday for comment.
If Maxis, which has more than 8 million subscribers in Malaysia, succeeds in securing Sri Lanka's fifth license, it could derive some synergies from its neighboring Indian operations under Aircel Ltd.
Bids for the license costing $4 million close on June 30, The Edge reported.
The other operators in Sri Lanka are Celltel Lanka Ltd., wholly owned by Luxembourg-based cellular operator Millicom International Cellular; Hutchinson, a unit of Hong Kong's Hutchinson Telecommunications Ltd.; and Mobitel, a unit of government-owned Sri Lanka Telecom. |
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| Friday, June 23, 2006 |
Blackboard Inc. Raises Guidance, Lowers Integration Costs for Acquisition
NEW YORK -- Shares of Blackboard Inc. may see some activity Friday a day after the education software provider boosted its guidance for the second quarter and the year on stronger demand for its products.
Late Thursday, the company said it expects to lose between $6.7 million and $7.1 million in the second quarter, or 23 to 24 cents per share, compared with previous guidance of a loss between $8.3 million and $8.7 million, or 28 cents to 30 cents per share. Blackboard raised its revenue projection for the quarter by $1.3 million to a range of $41.8 million to $42.8 million.
The company said the integration of its $178.3 million cash purchase of fellow education software company WebCT is going more smoothly than expected, and it forecast a $4 million charge related to the deal in the second quarter, which is $1.4 million less than expected. Blackboard expects a deal-related charge of $13.5 million for the year, versus its prior estimate of $18 million.
ThinkEquity analyst Kirsten Edwards upgraded Blackboard's stock to "Buy" from "Accumulate" on the news, raising her price target by $1 to $32.
In a research note to investors, Edwards said the company is showing "solid customer retention" during contract renewal season, and she is confident Blackboard is keeping a rein on the cost of integrating WebCT.
Its stock has declined 16 percent in the last two months even as market fundamentals remain strong, she noted.
For 2006, Blackboard expects to lose $12.7 million to $13.7 million, or 43 cents to 47 cents per share, versus previous guidance for a loss of $14.7 million to $15.9 million, or 50 cents to 54 cents per share.
Revenue is seen in a range of $173.1 million to $176.1 million, compared with previous guidance of $170 million.
Analysts polled by Thomson Financial forecast a second-quarter loss of 29 cents per share on $41.4 million in revenue, and a loss for 2006 of 52 cents per share on $171.6 million in revenue. |
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Shares of Blackboard (BBBB:Nasdaq) were among technology's winners Friday, surging 15% after the software company bolstered its second-quarter and full-year outlook.
The company now sees a loss of 23 cents to 24 cents a share, with revenue of $41.8 million to $42.8 million. Analysts polled by Thomson First Call project a wider loss of 29 cents a share and revenue of $41.4 million. Previously, the company forecast a loss of 28 cents to 30 cents a share on revenue of $40.5 million to $41.5 million. On a so-called cash basis, which excludes items, the company now sees a loss of 4 cents to 5 a share, narrowed from an earlier view of 9 cents to 10 cents.
For the full year, Blackboard now anticipates a loss of 43 cents to 47 cents a share. The company's prior forecast called for a loss of 50 cents to 54 cents a share. Blackboard raised its revenue forecast to $173.1 million to $176.1 million from a previous estimate of $169.7 million to $172.7 million. Analysts project a loss of 52 cents a share and revenue of $171.6 million. On a cash basis, the company now sees a profit of 15 cents to 19 cents a share, up from an earlier view of 8 cents to 13 cents a share. Shares were up $3.63 to $27.95.
Tektronix (TEK:NYSE) slid 9% after the company posted solid fiscal fourth-quarter results but gave a lower-than-expected guidance for the first quarter. The company, which makes testing and measurement equipment for computer and chip companies, posted earnings of $31.9 million, or 37 cents a share, for the period ended May 27. Excluding items, the company earned $36.4 million, or 43 cents a share, a penny better than analysts' average forecast. Revenue totaled $289.3 million, compared with Wall Street's projection of $282.3 million. A year earlier, the company earned $27.4 million, or 31 cents a share, on revenue of $261 million.
Looking ahead, Tektronix projects first-quarter earnings of 31 cents to 34 cents a share, with revenue of $255 million to $265 million. Analysts had forecast earnings of 35 cents a share and revenue of $266.1 million. Shares were trading down $2.87 to $27.39.
Shares of Spectrum Control (SPEC:Nasdaq) vaulted 25% after the maker of electronic control products and systems posted big gains in second-quarter earnings and revenue. For the period ended May 31, the company earned $1.7 million, or 13 cents a share, up from $1.3 million, or 10 cents a share, a year earlier. Revenue for the May quarter rose to $31.9 million from $25.9 million.
Spectrum Control sees third-quarter earnings of 14 cents to 15 cents a share and revenue of about $32 million. For the fourth quarter, the company predicts earnings of 19 cents to 21 cents a share on revenue of about $32 million. Shares traded up $1.73 to $9.07.
Intervoice (INTV:Nasdaq) rose 4% after the software company posted a narrower-than-expected first-quarter loss. For the period ended May 31, the company reported a loss of $405,000, or 1 cent a share, on revenue of $45.7 million. Analysts expected a loss of 3 cents a share and revenue of $45 million. During the year-earlier period, the company posted a profit of $3.9 million, or 10 cents a share, on revenue of $43.3 million.
For the second quarter, Intervoice expects revenue of $44 million to $49 million, in line with analysts' projection of $46.4 million. Shares were up 26 cents to $6.29.
Shares of Xilinx (XLNX:Nasdaq) slipped 1% after the chip company said that the Securities and Exchange Commission is informally probing its stock-option grant practices and disclosures. Xilinx said it is cooperating with the SEC. Shares were trading down 34 cents to $23.01.
Other technology movers included Sirius Satellite Radio (SIRI:Nasdaq) , up 30 cents to $4.49; Oracle (ORCL:Nasdaq) , up 63 cents to $14.96; Qualcomm (QCOM:Nasdaq) , down $1.88 to $39.50; Intel (INTC:Nasdaq) , down 10 cents to $18.15; Microsoft (MSFT:Nasdaq) , down 13 cents to $22.75; Applied Materials (AMAT:Nasdaq) , down 41 cents to $16.14; Apple Computer (AAPL:Nasdaq) , down 35 cents to $59.23; JDSU (JDSU:Nasdaq) , unchanged at $2.60; Sun Microsystems (SUNW:Nasdaq) , down 2 cents to $4.23; and Cisco Systems (CSCO:Nasdaq) , down 6 cents to $19.63. |
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| Thursday, June 22, 2006 |
Shares of Phoenix Technologies (PTEC:Nasdaq) were among technology's losers Thursday, plunging 31% after the software company slashed its third-quarter revenue guidance.
For the period ending June 30, the company now anticipates revenue of $10 million to $12 million, well below its previous guidance of $24.5 million to $26.5 million. Analysts polled by Thomson First Call project revenue of $24.6 million. The company attributed the dour outlook to a host of issues, including slower-than-expected core system software sales, which was related to Microsoft's (MSFT:Nasdaq) delayed launch of Vista. The company also said that product issues hurt its third-quarter results. For the full year, the company sees revenue of $68 million to $70 million, well below the $94 million that analysts project.
Phoenix also said it is undergoing a restructuring, which is expected reduce expenses to $19.5 million to $20 million during the fourth quarter. Third-quarter expenses, meanwhile, are expected to be $22.5 million, flat compared to second-quarter expenses. Shares were trading down $1.81 to $4.02.
Shares of Novell (NOVL:Nasdaq) jumped 12% after the software company ousted its chief executive and chief financial officer. "The board concluded that a management change would be the best way to accelerate the execution of our growth strategy and build value for shareholders," Novell said. The removal of CEO Jack Messman and Chief Financial Officer Joseph Tibbetts from their duties is effective immediately. Ronald Hovsepian will replace Messman on a permanent basis, while Dana Russell, the company's vice president of finance and corporate controller, will serve as interim CFO. Novell shares recently were up 71 cents to $6.71.
Nice Systems (NICE:Nasdaq) jumped 12% after the Israeli communications outfit lifted its second-quarter guidance. The company now sees adjusted earnings of 25 cents to 30 cents a share, up from an earlier view of 22 cents to 24 cents a share. The company raised its revenue projection to $94 million to $98 million, above its previous forecast of $89 million to $92 million. Analysts project earnings of 23 cents a share on revenue of $90.5 million. "We are seeing stronger than originally anticipated market demand for our enterprise interaction and public safety and security solutions," Nice Systems said. The company plans to issue second-quarter results on Aug. 2. Shares were up $2.91 to $26.74.
Shares of Pacific Internet (PCNTF:Nasdaq) jumped 17% after MediaRing offered to buy the voice-over-Internet-protocol services company for $9.50 a share, a 15% increase from its earlier offer of $8.25 a share. "We are taking this step to demonstrate our commitment to our offer for PacNet," said MediaRing, an Asian VoIP provider, in a press release. "Given PacNet's share price performance in recent months and market uncertainty going forward, we believe our revised cash offer represents very good value for PacNet's shareholders." Pacific Internet previously rejected MediaRing's $8.25-a-share bid, calling the deal "inadequate and not in the best interests of the shareholders." MediaRing said its $9.50 a share offer is final. Pacific Internet shares were trading up $1.38 to $9.33.
Tekelec (TKLC:Nasdaq) rose 4% after the telecom-equipment company announced a restructuring plan that is projected to result in annual savings of about $8 million to $8.5 million. The restructuring plan will result in the loss of some 60 jobs, with the majority of the cuts taking place in the company's Switching Solutions Group, which is based in Plano, Texas. Tekelec expects to record a restructuring charge of about $3.4 million during the second quarter. "The action is principally the result of the company realigning its cost structure to better match its business opportunities and to complete the integration of past acquisitions," Tekelec said. Shares were trading at $12.22, up 52 cents.
Other technology movers included Microsoft (MSFT:Nasdaq) , down 18 cents to $22.90; Cisco Systems (CSCO:Nasdaq) , down 31 cents to $19.76; JDSU (JDSU:Nasdaq) , down 3 cents to $2.60; Oracle (ORCL:Nasdaq) , down 6 cents to $14.47; Intel (INTC:Nasdaq) , down 8 cents to $18.32; Apple Computer (AAPL:Nasdaq) , up 79 cents to $58.65; Qualcomm (QCOM:Nasdaq) , down $2.16 to $42.04; Sirius Satellite Radio (SIRI:Nasdaq) , unchanged at $4.21; and Sun Microsystems (SUNW:Nasdaq) , down 7 cents to $4.25. |
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| Wednesday, June 21, 2006 |
Spansion Raises 2nd-Quarter Revenue Forecast to Range of $605 Million to $635 Million
SUNNYVALE, Calif. -- Spansion Inc., a maker of flash memory for electronic devices, on Tuesday raised its revenue projections for the second quarter to a range of $605 million to $635 million, from previous guidance of $590 million to $620 million.
Analysts polled by Thomson Financial expect $600.9 million in revenue for the quarter.
Spansion cited strong demand from the cellular phone, consumer and industrial markets.
Shares of Spansion rose 17 cents to close at $14.25 on the Nasdaq, before adding 53 cents, or 3.7 percent, to $14.78 in aftermarket activity. The stock has ranged between $11.71 and $18.59 over the past year. |
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Shares of Spansion (SPSN:Nasdaq) were among technology's winners Wednesday, rising 4% after the flash-memory company boosted its second-quarter revenue outlook.
The company now sees revenue of $605 million to $635 million, up from an earlier forecast of $590 million to $620 million. Analysts polled by Thomson First Call project a top line of $600.9 million. Spansion attributed the revision to strong worldwide demand from cellular phone, consumer and industrial markets. Spansion plans to release its second-quarter results in July. Shares were trading up 63 cents to $14.88.
Shares of Acxiom (ACXM:Nasdaq) rose 1% after ValueAct Capital said it plans to conduct a tender offer to buy up to 7 million shares for $25 apiece if its nominees are elected at Acxiom's annual meeting. The hedge fund, which currently owns about 11.7% of Axciom's stock, said it would own slightly less than 20% of the stock if it purchases all 7 million shares. ValueAct is attempting to get its three-person slate on the board "to drive changes that will produce more value for shareholders," the hedge fund said in a letter to Acxiom shareholders. The company's shares were trading up 25 cents to $23.56.
FSI International (FSII:Nasdaq) traded actively after the company posted better-than-expected third-quarter revenue and gave a stronger-than-expected forecast for the fourth quarter. For the quarter ended May 27, the semiconductor-equipment maker posted a loss of $2.4 million, or 8 cents a share, on revenue of $32 million. Analysts expected a loss of 7 cents a share on lower revenue of $28.3 million. A year earlier, the company recorded a loss of $2 million, or 7 cents a share, on revenue of $19.1 million. The results during the year-earlier period included a one-time gain of $4.2 million, or 14 cents a share.
FSI International sees fourth-quarter earnings of $1 million to $2 million, with revenue of $35 million to $40 million. Analysts project earnings of $760,000 on revenue of $31.9 million. Shares were trading at $5.92, down 2 cents, on volume of 1.5 million shares. The stock's average volume is roughly 143,000 shares.
Shares of Andrew (ANDW:Nasdaq) rose 1% after the telecom supplier received a phase-two geolocation-systems contract for worth more than $10 million. The latest award, which was granted by an operator in the Middle East, brings the total contract value to date to more than $20 million. Andrew shares were up 5 cents to $9.16.
Jabil Circuit (JBL:NYSE) fell 3% ahead of the release of its third-quarter results. Analysts expect the electronics-manufacturing services company to post earnings of 37 cents a share on revenue of $2.57 billion. Last week, Jabil shares plunged after the company cut its guidance, estimating third-quarter core earnings of 33 cents to 37 cents a share, down from an earlier forecast of 43 cents a share. Jabil maintained its sales view, though, saying it still expects to post sales of $2.5 billion to $2.6 billion. Shares were recently down 91 cents to $25.32.
Other technology movers included Microsoft (MSFT:Nasdaq) , up 33 cents to $22.89; Oracle (ORCL:Nasdaq) , up 48 cents to $14.73; Intel (INTC:Nasdaq) , up 39 cents to $18.54; Cisco Systems (CSCO:Nasdaq) , up 68 cents to $20.41; JDSU (JDSU:Nasdaq) , up 7 cents to $2.62; Level 3 Communications (LVLT:Nasdaq) , up 7 cents to $4.14; Apple Computer (AAPL:Nasdaq) , up 60 cents to $58.07; Sirius Satellite Radio (SIRI:Nasdaq) , up 14 cents to $4.15; Sun Microsystems (SUNW:Nasdaq) , up 5 cents to $4.27; Applied Materials (AMAT:Nasdaq) , up 34 cents to $16.79; and Lucent Technologies (LU:NYSE) , 9 cents to $2.44. |
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| Tuesday, June 20, 2006 |
Qiao Xing Universal Telephone Shares Hit New 52-Week High on Release of 2005 Earnings
NEW YORK -- Shares of Qiao Xing Universal Telephone Inc. surged to a new 52-week high on heavy trading volume Tuesday after the Chinese telephone maker reported 2005 results that surpassed earlier forecasts.
Qiao Xing shares climbed $1.91, or 20.5 percent, to $11.25 in midday trading on the Nasdaq at more than 13 times their average volume. The stock, which has traded between $5.02 and $10.87 over the past 12 months, reached a new 52-week high of $12.15 earlier in the session.
The Huizhou City, China-based company, which also makes consumer electronics, reported net income of $30.8 million, or $1.44 per share, for the year, up from $2.8 million, or 17 cents per share, in 2004, driven by performance in its CEC Telecom Co. unit. Excluding an extraordinary gain on the acquisition of minority interests, the company reported earnings per share of $1.68 for the year.
On Wednesday, the company forecast that earnings per share, before one-time gains, would "increase significantly" to well above $1.
Revenue increased 42 percent to $356.2 million from a year ago. |
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Shares of Qiao Xing Universal Telephone (XING:Nasdaq) were among technology's winners Tuesday, soaring 22% after the telecom-products company posted big year-over-year gains in its fiscal-year results.
The Chinese company reported 2005 earnings of $31 million, up 987%, on revenue of $356 million, which was 42% higher than 2004. Excluding a one-time gain, the company earned $26.4 million, or $1.44 a share, during 2005. "We are pleased that the company's financial results have improved significantly over past years, indication that we have found our place in this fiercely competitive business section in which we operate," the company said. Gross margin came in at 17%, up from 11.1% during 2004. Shares were trading up $2.02 to $11.36.
Progress Software (PRGS:Nasdaq) fell 3% after the company said that it is reviewing its stock-option grant practices. The inquiry covers all option grants since the beginning of fiscal 1996. Progress said it hasn't received an inquiry from the Securities and Exchange Commission or any other governmental agency related to the matter. The company's review, it said, was prompted "by recent media and analysts reports regarding stock option grant practices of numerous companies, and by investor inquiries."
Separately, Progress Software reported second-quarter revenue of $109.6 million, up 9% from $100.2 million a year earlier. Analysts polled by Thomson First Call expected revenue of $109.3 million. As a result of the stock-option inquiry, the company didn't post earnings information for the quarter. Shares were trading down 76 cents to $22.15.
Shares of Yak Communications (YAKC:Nasdaq) jumped 14% after the telecom-services concern said it is exploring its strategic alternatives, including the potential sale of the company. The move is aimed at maximizing shareholder value, the company said. Yak said it hasn't hired an investment bank to help it explore options. Shares were up 38 cents to $3.14.
Software company CA (CA:NYSE) said it named Alan Nugent chief technology officer. The move is effective immediately. Nugent will continue to lead the CA's Enterprise Systems Management Business unit until a successor is named, CA said. "In his new role, he will oversee CA's technology vision and strategy and assure that the company's solutions are built on common technology architecture," CA said in a press release. Shares were recently down 30 cents to $21.01.
Other technology movers included Microsoft (MSFT:Nasdaq) , up 9 cents to $22.64; Intel (INTC:Nasdaq) , up 7 cents to $18.31; Sun Microsystems (SUNW:Nasdaq) , up 2 cents to $4.16; JDSU (JDSU:Nasdaq) , up 12 cents to $2.54; Lucent Technologies (LU:NYSE) , up 1 cent to $2.39; Cisco Systems (CSCO:Nasdaq) , up 11 cents to $19.93; Sirius Satellite Radio (SIRI:Nasdaq) , up 6 cents to $4.04; Level 3 Communications (LVLT:Nasdaq) , down 12 cents to $4.07; Applied Materials (AMAT:Nasdaq) , up 38 cents to $16.69; Apple Computer (AAPL:Nasdaq) , up 84 cents to $58.04; and Oracle (ORCL:Nasdaq) , up 12 cents to $14.41. |
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| Monday, June 19, 2006 |
Texas Instruments Edges Up, but Intel and AMD Fall in Afternoon Trading
NEW YORK -- Semiconductor stocks were a mixed bag Monday, as shares of Texas Instruments Inc. rose 38 cents to $29.94 in afternoon trading on the New York Stock Exchange, but shares of sector heavyweights Intel and AMD declined.
Cell phone maker Nokia Corp., one of Texas Instruments' biggest customers, on Monday said it would merge its network equipment unit with Siemens AG's unit in a $30 billion joint venture.
Elsewhere in the sector, shares of Phoenix-based On Semiconductor Corp., a designer of semiconductor components, were up 14 cents at $5.74 on the Nasdaq.
Intel stock rose earlier in the session as UBS analyst Thomas Thornhill lifted his rating on the stock to "Buy" from "Neutral" based on positive trends for gross margins and operating margins. But the stock was down 3 cents to $18.27 by late afternoon.
Shares of Intel rival Advanced Micro Devices Inc. were down 61 cents, or 2.4 percent, at $25.03 on the New York Stock Exchange.
Freescale Semiconductor Inc., which supplies semiconductors to cell phone maker Motorola Inc., saw shares drop 32 cents to $27.83 on the New York Stock Exchange. |
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Shares of Peerless Systems (PRLS:Nasdaq) were among technology's losers Monday, slumping 19% after the imaging-products company said that a vendor in a system-on-chip development pact has decided that it won't move into a second phase of the agreement with Peerless.
"While there appears to be significant interest from original equipment manufacturers, in the IP from Peerless, the vendor in the agreement has elected not to continue into the production phase of the project," Peerless said. Peerless originally signed the non-exclusive development agreement with the vendor on March 30.
The termination of the agreement will result in a reduction of $200,000 to $300,000 in projected service revenue for the current fiscal quarter, which ends July 31, Peerless said. The termination, meanwhile, is expected to cut revenue by $1.5 million during the current fiscal year, which ends Jan. 31. Peerless shares were trading down $1.28 to $5.34.
Nokia (NOK:NYSE ADS) and Siemens (SI:NYSE ADR) moved higher Monday after the companies agreed to merge their wireless network businesses. The joint venture, which will be called Nokia Siemens Networks, will create a telecom-equipment powerhouse generating revenue of about $20 billion a year.
"This joint venture is an important step to strengthen our position in the market sustainably and to enable us to offer the best state of the art converged technologies and services to our customers," Nokia said in a press release. Shares of Nokia recently were trading up 28 cents to $20.25, while shares of Siemens jumped $5.03 to $84.83.
Shares of Syniverse Holdings (SVR:NYSE) rose 4% after the networking-services company agreed to acquire Interactive Technology Holdings for up to $45 million. The deal will consist of $38 million in cash and possible earn-outs that could be worth as much as $7 million in cash. "The acquisition of ITHL is an important step in Syniverse's strategic plan for global expansion and product development," Syniverse said. The acquisition is expected to add to earnings during 2006. Shares of Syniverse were up 54 cents to $15.59.
Vonage (VG:NYSE) slid 9% after the company said it is being sued by Verizon (VZ:NYSE) for patent infringement. The lawsuit relates to Vonage's voice over Internet technology, Vonage said in a press release. "Vonage believes that its services have been developed with its own proprietary technology and technology licensed from third parties and intends to vigorously defend the lawsuit," the company said. Shares of Vonage were trading down 84 cents to $8.76, while shares of Verizon were up 19 cents at $32.73.
Other technology movers included Microsoft (MSFT:Nasdaq) , up 30 cents to $22.40; Intel (INTC:Nasdaq) , up 28 cents to $18.58; Sirius Satellite Radio (SIRI:Nasdaq) , down 8 cents to $3.99; JDSU (JDSU:Nasdaq) , up 8 cents to $2.50; Sun Microsystems (SUNW:Nasdaq) , down 8 cents to $4.22; Oracle (ORCL:Nasdaq) , up 29 cents to $14.48; Cisco Systems (CSCO:Nasdaq) , down 1 cent to $19.97; Apple Computer (AAPL:Nasdaq) , up 40 cents to $57.96; Dell (DELL:Nasdaq) , down 12 cents to $24; Level 3 Communications (LVLT:Nasdaq) , down 12 cents to $4.25; Applied Materials (AMAT:Nasdaq) , up 19 cents to $16.49; and Lucent Technologies (LU:NYSE) , down 3 cents to $2.41. |
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| Friday, June 16, 2006 |
Microsoft Corp. shares held their ground in aftermarket trading after founder Bill Gates announced he will give up his day-to-day role at the company in 2008, while several technology stocks reversed regular session gains on weak earnings and stock options probes.
Shares of Redmond, Wash.-based Microsoft fell fractionally, by 11 cents, to $21.96 on the INET electronic exchange, after closing up 19 cents at $22.07 on the Nasdaq. Chairman Bill Gates announced after the bell he will transition from his daily responsibilities at the company, eventually working for the Bill & Melinda Gates Foundation full-time by July 2008.
Semiconductor maker Linear Technology Corp. and biotech Medarex Corp. became the latest companies to be caught up in the Securities and Exchange Commission's stock option backdating inquiry Thursday.
Linear Technology stock dropped 38 cents to $34.40 on the INET. Shares finished the regular session up 66 cents to $34.78 on the Nasdaq.
The Milpitas, Calif., company said it would comply with the SEC's request for information on the company's practices, made as part of an informal inquiry. On May 24, the company said two stockholder derivative lawsuits were filed against the company's board of directors, alleging improper backdating.
Similarly, shares of Medarex Corp. dropped 21 cents, or 2.1 percent, to $9.60 on INET after closing up 5.6 percent at $9.81. The Princeton, N.J., company said it received a grand jury subpoena from the U.S. Attorney's Office, asking for information on its stock option grants and practices. The company has two shareholder lawsuits filed against it in regard to stock option backdating and the U.S. Attorney's Office, along with the SEC, are looking into several companies practices on the issue.
Shares of California Micro Devices Corp. plummeted in aftermarket trading after the company lowered its first quarter expectations. The stock lost 76 cents, or 13 percent, to $5.10 on INET, after closing up 6 cents at $5.86 on the Nasdaq.
The semiconductor maker said it expects a net loss of 12 cents to 13 cents a share, wider than its prior loss forecast of 9 cents to 11 cents. The drop is due to a large decline in demand over the last month, the company said.
Software maker Adobe Systems Inc. posted a lower profit for the second quarter, driving its stock down in the extended session after a day of modest gains. Shares fell 97 cents, or 3.4 percent, to $27.99 on INET after gaining 39 cents to hit $28.96 on the Nasdaq.
The San Jose, Calif., company said profit for the period fell 18 percent from a year ago. The results were due to costs related to the company's acquisition of Macromedia in December. Adobe paid $3.4 billion for the company, and though it boosted revenue for the quarter, the costs still took a large chunk out of the company's profit.
Meanwhile, software maker Oracle Corp. extended its daytime gains on a positive outlook for its fourth-quarter earnings. Shares rose 85 cents, or 6.2 percent, to $14.55 on INET after gaining 3.9 percent to close at $13.70 on the Nasdaq.
The Redwood City, Calif., company said it expects earnings to come in at 24 cents a share, up from previous estimates of between 21 cents and 23 cents. It cited strong gains in new software revenue as the catalyst. |
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Shares of California Micro Devices (CAMD:Nasdaq) were among technology's losers Friday, dropping 26% after the maker of analog semiconductor products cut its first-quarter earnings and revenue guidance.
For the period ending June 30, the company now sees a loss of 12 cents to 13 cents a share. Including its Arques Technology product line, but excluding acquisition costs and stock-based compensation costs, the company expects earnings of 2 cents to 3 cents a share. California Micro projects revenue of $15 million to $16 million, down $2 million from its earlier forecast. Analysts polled by Thomson First Call had forecast earnings of 4 cents a share and revenue of $17.7 million.
"With the exception of our packaged EMI filter ASIPs and low capacitance ESD devices, we have seen a broad based decline in demand for our products in the last month," the company said. "We believe this is due in part to softer market demand and in part to the competitive inroads by ceramic filters and packaged ASIPs at certain mobile handset customers." Shares were trading down $1.53 to $4.33.
Oracle (ORCL:Nasdaq) rose 3% after the business-software company previewed better-than-expected fourth-quarter earnings. When the company reports earnings next week, it expects to post a profit of 24 cents a share, ahead of its previous guidance of 21 cents to 23 cents a share. Excluding certain items, Oracle sees earnings of 29 cents a share, up from its previous forecast of 26 cents to 28 cents a share, and above analysts' estimates of 27 cents a share. Pro forma revenue, meanwhile, increased 22% to $4.94 billion, better than the 10% to 14% increase that Oracle had forecast. Analysts project revenue of $4.55 billion. Oracle plans to release its full results on June 22. Shares were trading up 46 cents to $14.16.
Shares of OmniVision Technologies (OVTI:Nasdaq) sold off Friday, even though the company posted better-than-expected fourth-quarter results and offered solid first-quarter guidance. For the period ended April 30, the company earned $22.5 million, or 39 cents a share, on revenue of $131.8 million. Analysts expected earnings of 38 cents a share on revenue of $124.9 million. A year earlier, the company earned $17.7 million, or 30 cents a share, on revenue of $103 million.
Looking ahead, OmniVision sees first-earnings of 38 cents to 43 cents a share, excluding stock-based compensation costs. Analysts project earnings of 38 cents a share. The company targets revenue of $135 million to $145 million, above Wall Street's projection of $130.2 million. Shares were trading at $23.39, down $3.42.
Trident Microsystems (TRID:Nasdaq) fell 3% after the provider of chips for digital TVs said that it received a subpoena earlier this week from the U.S. Attorney's Offices for the Southern District of New York related to past stock-option grant practices. The company said that it would cooperate with any government or regulatory probes into the matter. The Securities and Exchange Commission began an informal probe the company's option grants during the fall of 2004. Shares were trading down 68 cents to $20.01.
Shares of Adobe Systems (ADBE:Nasdaq) rose 2% after the company posted second-quarter earnings that beat analysts' target by a penny. For the period ended June 2, the company earned $123.1 million, or 20 cents a share, on revenue of $635.5 million. Excluding one-time items, stock-based compensation and other costs, the company posted earnings of $189.4 million, or 31 cents a share. Analysts expected earnings of 30 cents a share, before items, on revenue of $644.9 million. A year earlier, Adobe earned $149.8 million, or 29 cents a share, on revenue of $496 million. Excluding items, the company reported earnings of $142.9 million, or 28 cents a share, for the year-earlier quarter.
For the fiscal third quarter, Adobe sees a profit of 25 cents to 27 cents a share, excluding items. The company expects revenue of $580 million to $610 million. The forecast was short of analysts' projection for earnings of 29 cents a share and revenue of $629.1 million. Still, shares were up 58 cents to $29.54.
Other technology movers included Microsoft (MSFT:Nasdaq) , down 12 cents to $21.95; Intel (INTC:Nasdaq) , up 18 cents to $18.30; Sun Microsystems (SUNW:Nasdaq) , down 9 cents to $4.26; Cisco Systems (CSCO:Nasdaq) , down 23 cents to $19.99; Level 3 Communications (LVLT:Nasdaq) , down 3 cents to $4.36; Ciena (CIEN:Nasdaq) , down 11 cents to $4.14; Applied Materials (AMAT:Nasdaq) , down 44 cents to $16.39; Apple Computer (AAPL:Nasdaq) , down $1.44 to $57.94; JDSU (JDSU:Nasdaq) , down 2 cents to $2.47; and Lucent Technologies (LU:NYSE) , down 1 cent to $2.40. |
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| Thursday, June 15, 2006 |
Lattice Semiconductor Shares Up on Raised 2Q Outlook, Analyst Reiterates 'Buy' Rating
NEW YORK -- Programmable chip-maker Lattice Semiconductor Corp. shares rose in morning trading Thursday after the company boosted its second-quarter guidance, causing two analysts to issue positive notes.
Late Wednesday, the Hillsboro, Ore.-based company said positive business trends prompted it to raise its revenue guidance between 5 percent and 7 percent from a previously expected gain of between 3 percent and 6 percent.
The company also raised its guidance for "other income," now seeing results from that category at about $4 million versus previous expectations of $2.5 million. In past results, that category has included profit from areas such as interest income.
David Duley with Merriman Curhan Ford & Co. reiterated a "Buy" rating, and expects strong sequential growth driven by new products, along with a recovery in the overall communications end markets.
He said Lattice raised its "other income" estimate due to a gain related to the liquidation of some if its foundry investments. Duley lifted both his 2006 earnings and revenue forecast.
Robert W. Baird & Company Inc. analyst Tristan Gerra reiterated an "Outperform" rating and a $9 target price. He said Lattice's raised revenue guidance is driven by sales of new field programmable gate arrays, or FPGA, which is a type of integrated circuit. He boosted his per-share earnings estimates and revenue outlook for 2006 and 2007.
Meanwhile, Pacific Crest analyst Ruben Roy reiterated a "Sector Perform" rating. "FPGA design wins continue to translate into revenue-generating opportunities," he wrote.
He did not change his forecast. "We believe that the company's latest FPGA products could prove more competitive in the market place," he wrote. "However, we believe that Lattice must now execute in order to take advantage of its new product cycle."
Shares climbed 30 cents, or 5 percent, to $6.15 in Nasdaq trading. |
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Shares of Inter-Tel (INTL:Nasdaq) were among technology's winners Thursday, jumping 10% after the communications-services company received a formal buyout offer from its former chief executive.
Steven Mihaylo and investment group Vector Capital offered to buy Inter-Tel for $22.50 a share in cash, representing a 12% premium to Wednesday's closing price of $20.03. The official offer comes after Mihaylo and Vector first expressed interest in a buyout in March. In a press release, Mihaylo and Vector said the company has "raised various issues" with respect to the offer, to which they have responded. Inter-Tel shares were trading up $2.02 to $22.05.
Shares of Lattice Semiconductor (LSCC:Nasdaq) rose 7% after the chipmaker lifted its second-quarter revenue guidance. The company now sees sequential revenue growth of 5% to 7%, up from an earlier view of 3% to 6%. Lattice attributed the higher estimate to positive quarter-to-date business trends, especially in its field-programmable gate-arrays segment. The company now sees "other income" of $4 million, up from an earlier forecast of $2.5 million, due to the liquidation of a portion of its foundry investments. Analysts polled by Thomson First Call project second-quarter revenue of $58.4 million, or sequential growth of about 2%. Shares were trading up 42 cents to $6.27.
Shares of Radvision (RVSN:Nasdaq) climbed 7% after the network equipment company said it filed an application with the District Court in Tel Aviv Jaffa for the purchase of up to $30 million of its own stock. Under the proposed buyback plan, Radvision would not be able to buy more than 2 million shares. Shares were trading up $1.04 to $15.02.
Catalyst Semiconductor (CATS:Nasdaq) tumbled 14% after the maker of programmable technology products delayed the release of its fourth-quarter results for the second time in a week. The delay relates to the company's ongoing review of its financial statements and changes in cost accounting in the quarter. When the company eventually reports its results for the quarter ended April 30, it expects to report revenue of about $14 million, which is below the $16.4 million that analysts expected. A year earlier, Catalyst recorded revenue of $16.3 million. Shares were trading down 59 cents to $3.58.
Shares of IDT (IDT:NYSE) rose 4% after the telecom company announced a repurchase plan of up to 25 million shares, regardless of share class. The company terminated its previous buyback authorization, which allowed the company to buy an additional 1.9 million shares of common stock and 11.7 million shares of class B stock. Shares were trading up 51 cents to $13.53.
Other technology movers included Microsoft (MSFT:Nasdaq) , up 6 cents to $21.94; Sun Microsystems (SUNW:Nasdaq) , up 15 cents to $4.31; Intel (INTC:Nasdaq) , up 19 cents to $17.92; JDSU (JDSU:Nasdaq) , up 9 cents to $2.47; Lucent Technologies (LU:NYSE) , up 10 cents to $2.39; Oracle (ORCL:Nasdaq) , up 45 cents to $13.64; Apple Computer (AAPL:Nasdaq) , down 12 cents to $57.49; Cisco Systems (CSCO:Nasdaq) , up 28 cents to $19.89; Level 3 Communications (LVLT:Nasdaq) , up 14 cents to $4.35; Applied Materials (AMAT:Nasdaq) , up 19 cents to $16.63; Sirius Satellite Radio (SIRI:Nasdaq) , down 4 cents to $4.06 and Ciena (CIEN:Nasdaq) , up 16 cents to $4.18. |
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Philips to Buy Intermagnetics General Corp. for $1.26 Billion
AMSTERDAM, Netherlands -- Royal Philips Electronics NV on Thursday launched a $1.3 billion cash offer for U.S. magnet maker Intermagnetics General Corp. as part of a strategy to strengthen its medical equipment division.
In a bid unanimously supported by the company's boards, Philips offered $27.50 per share for Intermagnetics, a 29 percent premium to Intermagnetics' Wednesday closing price of $21.38 on the Nasdaq Stock Market.
Latham, N.Y.-based Intermagnetics makes superconducting magnets used in magnetic resonance imaging, or MRI, systems. It had sales of $304 million in its last fiscal year ended in February.
Philips, which is the second-largest maker of medical equipment globally after General Electric Co., said it expects the acquisition will win customers in the short run, and improve the company's supply chain and development of new products in the long run.
"Through this acquisition, we will greatly strengthen the overall performance and innovation capability of our MRI business," Jouko Karvinen, chief executive of the Medical Systems unit, said in a statement.
In 2005, Philips bought U.S.-based medical company Stentor Inc. for $280 million to strengthen its position in the fast-growing market for clinical information technology. It also bought Lifeline Systems Inc. of the U.S. for $750 million to strengthen its consumer health business.
Philips shares rose 1.2 percent to 22.16 euros ($27.87) in Amsterdam trading.
Intermagnetics employs 1,150 people. Chief Executive Glenn Epstein will remain and lead the companies' merged MRI businesses with Latham as the new headquarters.
Philips said it would take an 85 million euro ($68 million) charge for integrating the company in the second half of 2006. |
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| Wednesday, June 14, 2006 |
Axcelis Announces Single Wafer Optima MD Order from National Semiconductor
Wednesday June 14, 8:47 am ET
Innovative Implant Platform Continues to Garner Momentum Worldwide
BEVERLY, Mass.----June 14, 2006--Axcelis Technologies, Inc. (NASDAQ: ACLS - News) has received an order for its single wafer Optima MD ion implanter from National Semiconductor for production of advanced analog integrated circuits. The Optima MD gives customers the flexibility, precision and productivity for the widest array of low energy, mid dose applications, especially well, channel and HALO processes. Axcelis plans to ship the Optima MD implanter to National Semiconductor's fab in South Portland, Maine in the third quarter of 2006.
"Axcelis and National Semiconductor have shared a long history of success in the mid dose arena," said John McClean, senior buyer for National Semiconductor's Maine facility. "The Optima MD's low energy capability, superior angle control and zero energy contamination made the choice to continue our relationship with Axcelis an easy one."
"The Optima MD continues to win over customers thanks to its exceptional manufacturing efficiency and yield performance - a testimony to the innovative system design," said Mary Puma, chairman and CEO of Axcelis. "We are thrilled that National Semiconductor shares the same enthusiasm we do in continuing our outstanding partnership."
Axcelis designed the entire Optima platform as an innovative, cost-effective approach to implantation needs in and beyond the 65nm technology node. Capable of addressing the entire range of implant energies, the single wafer platform encompasses three systems: the Optima MD for low energy, mid dose implant applications, the Optima HD for high dose applications, and the Optima HE for high energy applications. This platform, which joins Axcelis' market leading multi-wafer implant systems, positions Axcelis as the only supplier able to provide customers with a total solution for their implant needs.
About Axcelis Technologies, Inc.
Axcelis Technologies, Inc., headquartered in Beverly, Massachusetts, provides innovative, high-productivity solutions for the semiconductor industry. Axcelis is dedicated to developing enabling process applications through the design, manufacture and complete life cycle support of ion implantation, rapid thermal processing, and cleaning and curing systems. Axcelis Technologies has key product development centers in Beverly, Massachusetts, as well as in Saijo, Japan through its joint venture, SEN Corporation, an SHI and Axcelis Company. |
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Shares of National Technical Systems (NTSC:Nasdaq) were among technology's losers Wednesday, slumping 15% after the company posted a big decline in first-quarter earnings.
The company, a supplier of technical services and products to the aerospace, computer and telecom industries, earned $352,000, or 4 cents a share, for the period ended April 30. The results included $111,000 in stock-based compensation costs. During the year-earlier period, which did not include stock-based compensation costs, the company earned $734,000, or 8 cents a share. First-quarter revenue rose to $28.2 million from $27.4 million. National Technical said its results were hurt by lower revenue and margins in its automotive and telecom sectors, which the company attributed to a decline in overall market demand. Meanwhile, the company's technical-solutions business was hurt by a decline in demand for domestic information-technology services. Shares were trading down $1.04 to $5.99.
Asyst Technologies (ASYT:Nasdaq) fell 4% after the semiconductor-equipment maker said it would delay the filing of its annual report until a special committee of independent directors investigates the company's past stock-option grants and practices. The company said that it set up the special committee after it received a letter dated June 7 from the Securities and Exchange Commission that seeks documents related to the company's stock-option grants from 1997 to present. Shares were recently down 27 cents to $5.99.
Shares of Axcelis Technologies (ACLS:Nasdaq) rose 5% after the maker of semiconductor-processing equipment received an order for its single-wafer Optima MD ion implanter from National Semiconductor (NSM:NYSE) . National Semiconductor plans to use the Optima product to produce advanced analog chips. "The Optima MD's low energy capability, superior angle control and zero energy contamination made the choice to continue our relationship with Axcelis an easy one," National Semiconductor said in a press release. Axcelis plans to ship the product during the third quarter. Financial terms of the deal weren't disclosed. Shares of Axcelis were trading up 25 cents to $5.56.
Shares of Power-One (PWER:Nasdaq) rose 9% after the power-supply products company said it signed a supply agreement with Ericsson (ERICY:Nasdaq) . Under the deal, Power-One will provide power-supply products that Ericcson will deploy around the world. Financial details weren't disclosed. Shares were trading up 54 cents to $6.50.
Qiao Xing Universal Telephone (XING:Nasdaq) jumped 15% after the telecom-products company said that it expects 2005 basic earnings to be significantly higher than 2004 results. Excluding items, the company sees earnings that will be well above $1 a share. During 2004, the company earned 17 cents a share. Qiao Xing said that cash flow from operations turned positive as well. The company plans to release its full-year results on June 20. Shares were trading up $1.07 to $8.28.
Other technology movers included Intel (INTC:Nasdaq) , up 67 cents to $17.79; JDSU (JDSU:Nasdaq) , up 5 cents to $2.38; Microsoft (MSFT:Nasdaq) , up 29 cents to $21.80; Sun Microsystems (SUNW:Nasdaq) , up 12 cents to $4.30; Lucent Technologies (LU:NYSE) , unchanged at $2.30; Cisco Systems (CSCO:Nasdaq) , up 31 cents to $19.67; Ciena (CIEN:Nasdaq) , up 27 cents to $4.06; Level 3 Communications (LVLT:Nasdaq) , up 13 cents to $4.23; Apple Computer (AAPL:Nasdaq) , down 69 cents to $57.64; Applied Materials (AMAT:Nasdaq) , up 30 cents to $16.44; and Sirius Satellite Radio (SIRI:Nasdaq) , up 1 cent to $4.10. |
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| Tuesday, June 13, 2006 |
Jabil Circuit Shares Slide As Company Cuts 3Q Operating Profit View, Maintains Sales Outlook
ST. PETERSBURG, Fla. -- Contract electronics manufacturer Jabil Circuit Inc. said Tuesday that third-quarter operating earnings will fall below prior expectations, due to electromechanical operational issues and difficulties with certain U.S. production and repair facilities.
The news sent shares tanking 14.4 percent in pre-market activity, falling $4.67 to $27.75. The shares, which closed Monday at $32.42, have traded in a range of $28.30 and $43.70 in the past year.
Jabil reiterated that third-quarter net income will range between 26 cents and 30 cents per share, and maintained its sales forecast at $2.5 billion to $2.6 billion. However, the company lowered estimates for earnings, excluding items, to between 33 cents and 37 cents per share, compared with prior guidance of 43 cents per share.
Analysts polled by Thomson Financial are looking for earnings before items of 43 cents per share on sales of $2.6 billion, on average.
"We are disappointed with our financial performance in the third fiscal quarter of 2006 and are committed to improving our operational and financial performance," president and chief executive Timothy L. Main said in a statement. "Despite these short-term challenges, we are optimistic about the future. Revenues continue to show strong growth and we continue to expect core earnings for the quarter and for the year to exceed prior year levels."
In a note Tuesday, Bank of America analyst Scott Craig called the guidance revision "unexpected and meaningful." The adjustment implies a $22 million operating income shortfall and a 3.6 percent operating margin, compared with Craig's estimate of 4.5 percent, he said. |
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Shares of Jabil Circuit (JBL:NYSE) were among technology's losers Tuesday, plunging 26% after the provider of electronics-manufacturing services company cut its fiscal third-quarter earnings guidance, citing operational issues.
The company now sees core earnings of 33 cents to 37 cents a share, below its previous forecast of 43 cents. Core earnings exclude acquisition-related charges, stock-based compensation costs and other items. Jabil continues to see revenue of $2.5 billion to $2.6 billion. Analysts polled by Thomson First Call project earnings of 43 cents a share, with revenue of $2.55 billion. The company blamed the shortfall on operational issues within its electromechanical operations and on production and repair facilities in its Americas region.
"We are disappointed with our financial performance for the third fiscal quarter of 2006 and are committed to improving our operational and financial performance," Jabil said. "Despite these short-term challenges, we are optimistic about the future. Revenues continue to show strong growth, and we continue to expect core earnings for the quarter and for the year to exceed prior-year levels." Shares were trading down $8.55 to $23.87.
Qualcomm (QCOM:Nasdaq) rose 2% after the maker of wireless communications gear lifted its third-quarter earnings and revenue projections. The company now sees earnings of 41 cents to 42 cents a share, up from an earlier view of 38 cents to 40 cents a share. The company raised its revenue prediction to $1.91 billion to $1.96 billion from an earlier forecast of $1.77 billion to $1.87 billion. Analysts project earnings of 40 cents a share on revenue of $1.88 billion. The company also said that it now expects shipments of its Mobile Station Modem chips to be about 55 million, at the high end of its previous estimate of 53 million to 56 million. "Consumer demand for third-generation devices and services continues to be vibrant as operators offer compelling prices, services and devices," Qualcomm said. Shares were trading up 69 cents to $41.88.
Shares of Lamson & Sessions (LMS:NYSE) jumped 17% after the maker of enclosures, fittings and conduits for the electrical and telecommunications industries lifted its second-quarter guidance. The company now sees earnings of $12.8 million to $13.3 million, or 80 to 83 cents a share, up from an earlier view of $9.5 million to $10 million, or 60 cents to 63 cents a share. Lamson & Sessions anticipates revenue of $160 million to $163 million, up from an earlier forecast of $145 million to $150 million. Two analysts have an average estimate for earnings of 62 cents a share, while a single analyst projects revenue of $145.4 million. The company plans to issue second-quarter results on July 27. Shares were trading at $24.50, up $3.47.
Diodes (DIOD:Nasdaq) climbed 11% after the chipmaker boosted its second-quarter revenue guidance. The company now sees sequential growth of 10% to 12%, up substantially from an earlier view of 3% to 6%. During the first quarter, the company posted revenue of $73.6 million. Analysts project revenue of $77 million, which translates to 4.6% sequential growth. "The top-line increase has been driven by better-than-expected growth in all regions, and specifically in the computer segment," the company said. Diodes also expects second-quarter gross margin to increase slightly from the 32.9% that it reported for the first quarter. Shares were trading up $3.78 to $37.23.
Shares of RSA Security (RSAS:Nasdaq) fell 2% after the security software company said it received a subpoena from the U.S. Attorney for the Southern District of New York seeking records from 1996 to present regarding the company's stock-option grants. The company, which said that it plans to cooperate with the U.S. Attorney's office, on Friday disclosed that it was named as a defendant as part of a shareholder lawsuit related to stock-option grants issued from October 1999 to present. Shares of RSA were recently down 34 cents to $16.34.
Other technology movers included JDSU (JDSU:Nasdaq) , down 3 cents to $2.41; Intel (INTC:Nasdaq) , up 38 cents to $17.24; Microsoft (MSFT:Nasdaq) , up 19 cents to $21.90; Level 3 Communications (LVLT:Nasdaq) , up 8 cents to $4.18; Lucent Technologies (LU:NYSE) , down 8 cents to $2.33; Symantec (SYMC:Nasdaq) , up 4 cents to $15.67; Sun Microsystems (SUNW:Nasdaq) , up 6 cents to $4.17; Cisco Systems (CSCO:Nasdaq) , up 1 cent to $19.49; Sirius Satellite Radio (SIRI:Nasdaq) , down 3 cents to $4.08; and Apple Computer (AAPL:Nasdaq) , up $1.87 to $58.87. |
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| Monday, June 12, 2006 |
TOM Online to Expand Wireless Business, Get TV Distribution in $75 Million Infomax Acquisition
NEW YORK -- TOM Online Inc., one of China's largest Internet companies, said Monday it agreed to buy wireless entertainment company Infomax, in a move to gain access to the company's TV distribution network and strengthen its own wireless holdings.
The transaction is valued at a maximum of $75 million, and will be based on about 2.5 to 3.5 times of Infomax's 2006 earnings, and 3 to 4 times its 2007 earnings.
Wang Lei Lei, TOM Online CEO, said: "In the TV media alone, we have accumulated a vast amount of content cooperation experiences through our partnerships with more than 200 TV stations. I believe, with the addition of Infomax, TOM Online will be able to further enhance its TV distribution network, which in turn will help promote the growth of our entertainment services."
Beijing-based TOM expects the deal to close by the late second quarter or the third quarter, subject to regulatory approval. |
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Shares of Comverse Technology (CMVT:Nasdaq) were among technology's losers Monday, slumping 12% after the software company said it will delay filing its first-quarter report with the Securities and Exchange Commission because of an ongoing review into its stock-option grants.
Comverse said it plans to release its final first-quarter results and file its quarterly report with the SEC as soon as it completes its review of stock-option grants. In the meantime, Comverse previewed first-quarter sales of $373.5 million, representing a 36.9% increase from a year ago and an increase of 10.6% from the fourth quarter. Analysts polled by Thomson First Call expected sales of $360.9 million. "We continue to see strong demand drivers for our products and maintain a leadership position in our main markets," the company said. Shares were trading down $2.76 to $20.81.
Shares of LG.Philips (LPL:NYSE) fell 6% after the maker of liquid-crystal displays cut its second-quarter guidance. The Korean company now sees area shipments growing by a mid-teen percentage, down from an earlier view of a mid-to-high twenties percentage. The company now anticipates LCD TV shipments will grow 25%, about 50% lower than its earlier guidance. The company's earnings before interest, taxes, depreciation and amortization margin is now expected to be about 10%, down from an earlier forecast of about 20%.
"Several factors affected the global LCD industry during the second quarter," LG.Philips said. "First, the industry experienced larger-than-expected price declines across all product categories. In addition, while mid-to-long-term demand for flat-screen panels remains strong, we saw weaker seasonal demand during the second quarter which has increased our inventory to about four weeks, a higher level than anticipated." LG.Philips plans to release its second-quarter results July 11. Shares were down 95 cents to $16.26.
Tom Online (TOMO:Nasdaq) rose modestly after the Chinese wireless-messaging-services company said it plans to buy Infomax, a wireless-entertainment provider, for up to $75 million. "Through the acquisition, Tom Online will gain access to Infomax's extensive TV distribution network which reaches out to hundreds of millions of Chinese households," Tom Online said in a press release. The acquisition is expected to close during the late part of the second quarter or in the third quarter. Shares of Tom Online were trading up 11 cents to $18.87.
Powerwave Technologies (PWAV:Nasdaq) rose 6% after the wireless-communications company agreed to buy the majority of Filtronic's wireless-infrastructure business for cash and stock. Powerwave will pay $150 million in cash and give 20.7 million shares. The acquisition is expected to close during the third quarter. After the deal closes, Filtronic will hold an equity stake of about 13% in Powerwave. "Our proposed acquisition of the wireless-infrastructure business of Filtronic will further expand Powerwave's leadership position in the wireless-infrastructure marketplace while deepening and strengthening our relationships with our customers," Powerwave said. The acquisition is expected to add 8 cents to 12 cents a share to Powerwave's fiscal 2007 earnings. Shares were trading up 51 cents to $9.49.
Shares of Intevac (IVAC:Nasdaq) fell 4%, even though the company said it received an order for four of its 200 Lean magnetic-disk-sputtering systems. The systems are scheduled for delivery during the fourth quarter and will be recognized as revenue during the same quarter. In May, the company said that it would deliver 34 to 39 of the disk-sputtering systems during 2006. With its latest order, the company has "now either shipped or received orders for all except one of the systems needed to achieve the upper end of that range," it said. Still, shares were trading down 81 cents to $19.24.
Other technology movers included JDSU (JDSU:Nasdaq) , down 19 cents to $2.54; Level 3 Communications (LVLT:Nasdaq) , down 23 cents to $4.25; Microsoft (MSFT:Nasdaq) , up 8 cents to $22; Intel (INTC:Nasdaq) , down 6 cents to $17.10; Sirius Satellite Radio (SIRI:Nasdaq) , down 5 cents to $4.21; Broadcom (BRCM:Nasdaq) , up 51 cents to $29.84; Finisar (FNSR:Nasdaq) , down 21 cents to $3.09; Cisco Systems (CSCO:Nasdaq) , down 10 cents to $19.87; Apple Computer (AAPL:Nasdaq) , down 50 cents to $58.74; Texas Instruments (TXN:NYSE) , down 41 cents to $29.27; and Lucent Technologies (LU:NYSE) , down 2 cents to $2.43. |
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| Friday, June 09, 2006 |
Take-Two Shares Tumble After 2nd-Quarter Results Disappoint Investors
NEW YORK -- Shares of Take-Two Interactive Software Inc. tumbled Friday, a day after the video game maker best known for the popular and bloody Grand Theft Auto series, posted a second-quarter loss far wider than Wall Street had expected.
For the quarter ended April 30, the company posted a loss of $50.4 million, or 71 cents per share, including accounting charges of 24 cents per share. Even without the charges, the results were far below the loss of 11 cents per share analysts polled by Thomson Financial were expecting.
The quarter's product mix weighed heavily toward lower-margin license titles in the company's publishing business, hurting results despite a 20 percent increase in sales, to $265.1 million. Software development costs were also higher than a year ago.
"Since the company does not give guidance, it's not fair to call this a 'miss', but the big losses despite a decent revenue number are troubling," wrote UBS analyst Michael P. Wallace in a note to clients.
Take-Two said lackluster retail sales in the video game sector, as well as declining prices, contributed to the quarter's weak results. The industry has seen a slump in recent months, as players await the release of Sony Corp.'s PlayStation 3, set for November, to buy new games. Nintendo is to announce the release date of its new console, Wii, in September.
Chief Financial Officer Karl Winters said during the company's conference call that, given its short-term uncertainty, Take-Two no longer has the visibility to give detailed guidance.
The company doesn't expect to return to profitability until the fourth quarter. Paul Eibeler, chief executive, said Take-Two is "taking a small break" from issuing guidance while business factors and conditions normalize.
Wallace, who rates Take-Two "Neutral," called the quarter's adjusted loss of 47 cents per share "disconcerting." The adjusted results exclude charges from game development write-offs for titles the company eliminated, as well as studio closures.
He added that the quarter's heavy losses came despite a top-selling game, "Elder Scrolls," and Take-Two's third-party exclusive rights for a baseball game. The company "paid a lot of money for the third-party exclusive, but got beaten to the market by Sony and has been outsold by them on the PlayStation 2," Wallace wrote.
Citigroup analyst Elizabeth Osur now expects the company to post a loss for the year instead of a profit and recommended that investors shed the stock. She downgraded Take-Two to "Sell" from "Hold," as the company's diversification strategies like sports have not yet proven profitable.
"Without guidance from management regarding the breadth of the release slate next year and even potentially incomplete data for this year, we find it difficult to forecast earnings for the coming years," she wrote in a note to clients.
She forecast a 2006 loss of $1.24 per share before stock options costs compared with a prior profit forecast of 14 cents per share. For 2007, the analyst now expects earnings of 81 cents per share, down from the prior projection of $1 per share.
Consensus estimates, which reflect stock options costs, are for break-even earnings in fiscal 2006 and earnings of 77 cents per share in 2007, according to Thomson Financial.
Shares plunged $2.94, or nearly 18 percent, to close at $13.83 on the Nasdaq Stock Market, skirting the 52-week low of $13.64, set in January. The stock traded at a 52-week high of $29.60 in June 2005.
Also on Thursday, Take-Two agreed to settle Federal Trade Commission charges for failing to disclose that animated sex scenes were hidden in its "Grand Theft Auto: San Andreas," game.
Under the deal, Take-Two and its Rockstar Games subsidiary, which developed the game, must notify customers of any hidden sexual content on future games, and represent rating or content descriptions accurately. The company received no penalties, but faces fines up to $11,000 per violation if it breaks the order.
The game is now rated "AO," or "Adults Only," after the Entertainment Software Rating Board, an industry body, changed it from "M," or "Mature" last year after a Dutch programmer unlocked the hidden sex content.
The company has since released a new version of "San Andreas" without the hidden content. |
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Shares of Take-Two Interactive (TTWO:Nasdaq) were among technology's losers Friday, slumping 16% after the video-game-software publisher posted a wider-than-expected second-quarter loss.
For the period ended April 30, the company reported a loss of $50.4 million, or 71 cents a share, on revenue of $265.1 million. The results included one-time items totaling $26.3 million, or 24 cents a share. Analysts polled by Thomson First Call expected a smaller loss of 11 cents a share on revenue of $258.8 million. Last year, Take-Two posted a second-quarter loss of $8.2 million, or 12 cents a share, on revenue of $222.1 million. "While near-term financial results continue to be impacted by the console transition, we are confident that we have positioned Take-Two for the long-term by streamlining our organization while maintaining an extremely talented global development team," the company said. Shares were trading down $2.61 to $14.16.
National Semiconductor (NSM:NYSE) rose 6% after the chipmaker posted better-than-expected fourth-quarter results. For the period ended May 28, the company earned $118.8 million, or 34 cents a share, including a tax charge of $24.5 million, or 7 cents a share. Analysts expected a profit of 38 cents a share, before the charge. National Semiconductor reported revenue of $572.6 million, topping Wall Street's target of $566.9 million. During the year-earlier quarter, the company earned $130.2 million, or 36 cents a share, on revenue of $467 million. The year-earlier results included one-time gains and losses that as a whole benefited the company by $41.6 million, or 11 cents a share. Gross margins in the most recent period climbed to 61.4%, up from 60.7% in the third quarter and 54.7% a year ago.
Looking ahead, National Semiconductor forecast a sequential revenue decline of 2% to 3%. The company expects gross margins that will be similar to just-completed fourth-quarter results. Shares were trading up $1.37 to $25.28.
Shares of Xilinx (XLNX:Nasdaq) fell 1% after the chipmaker backed its revenue guidance but cut its gross margin forecast slightly. The company continues to see sequential first-quarter sequential revenue growth of 1% to 5%, which would result in revenue of $477.1 million to $496 million. The company now sees its gross margin, meanwhile, at 62%, including stock-based compensation costs of about $4 million. Previously, the company said that gross margin would be about 62.5%. Xilinx blamed the lower outlook on "mix shifts within the new products category." Analysts project earnings of 32 cents a share and revenue of $487.8 million for the quarter ending in June. Shares were trading down 22 cents to $25.39.
Texas Instruments (TXN:NYSE) traded actively after the chipmaker boosted its second-quarter earnings and revenue guidance. The company now sees earnings of 46 cents to 48 cents a share, with revenue of $3.63 billion to $3.78 billion. Previously, the company forecast earnings of 38 cents to 43 cents a share and revenue of $3.46 billion to $3.75 billion. Analysts, meanwhile, project earnings of 40 cents a share on revenue of $3.61 billion. Texas Instruments said its revised revenue estimate includes a $70 million payment from Conexant Systems (CNXT:Nasdaq) related to a patent litigation settlement. Texas Instruments also received a sales tax benefit during the quarter. In all, the two items are expected to add 5 cents to 6 cents a share to earnings. Shares, which rose by nearly 3% in early trading, recently were down 81 cents to $29.91.
Shares of Peerless Systems (PRLS:Nasdaq) jumped 10% after the imaging-products company posted higher first-quarter earnings. The company earned $2 million, or 11 cents a share, on revenue of $8.8 million. The results included stock-based compensation costs of $79,000. During the year-earlier quarter, the company earned $414,000, or 2 cents a share, on revenue of $7.2 million. Gross margin jumped to 70.3% during the most recent period from 54.3% a year ago.
For the second quarter, Peerless projected a profit of $1 million to $1.5 million. The company anticipates revenue topping $10.5 million. Shares were trading up 66 cents to $7.16.
Other technology movers included Intel (INTC:Nasdaq) , up 8 cents to $17.19; Microsoft (MSFT:Nasdaq) , down 5 cents to $22.06; Level 3 Communications (LVLT:Nasdaq) , up 1 cent to $4.54; Sun Microsystems (SUNW:Nasdaq) , up 6 cents to $4.29; JDSU (JDSU:Nasdaq) , unchanged at $2.75; Cisco Systems (CSCO:Nasdaq) , up 21 cents to $20.10; Apple Computer (AAPL:Nasdaq) , down 82 cents to $59.94; Lucent Technologies (LU:NYSE) , up 1 cent to $2.43; and Oracle (ORCL:Nasdaq) , down 3 cents to $13.50. |
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