Tech Stock News And Analysis

Tech Stock News and Analysis

Thursday, June 29, 2006

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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