Tech Stock News And Analysis

Tech Stock News and Analysis

Tuesday, June 13, 2006

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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