| Tech Stock News and Analysis |
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| Monday, June 12, 2006 |
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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