| Tech Stock News and Analysis |
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| Tuesday, June 27, 2006 |
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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