| Tech Stock News and Analysis |
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| Monday, July 31, 2006 |
SanDisk to Buy M-Systems for $36 Per Share in All-Stock, $1.56B Deal
-- Flash memory maker SanDisk Corp. said Monday it agreed to acquire Israeli competitor M-Systems Flash Disk Pioneers Ltd., in a $1.56 billion all-stock deal.
The transaction values M-Systems at $36 per share, a 26 percent premium over the average closing price of M-Systems' shares over the last month. M-Systems had roughly 38 million outstanding shares as of July 28.
The deal is expected to close in the fourth quarter, and is subject to several factors including Israeli court and regulatory approval. SanDisk estimates that the M-Systems purchase will grow its earnings on a cash operating basis by the end of 2007.
Rumors began surfacing of a possible deal last week, when Israeli media reported that SanDisk offered to buy M-Systems for $1.5 billion.
M-Systems is one at least 61 companies under review by the Securities and Exchange Commission or the Department of Justice for allegedly backdating stock option grants to coincide with share lows to boost executive profits. There are at least another 18 companies conducting internal reviews of their stock option grant practices.
Shares of M-Systems soared on the news, jumping $4.08, or 12.8 percent, to $35.87, in afternoon trading on the Nasdaq. SanDisk shares dropped 70 cents to $46.44. |
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| Saturday, July 29, 2006 |
Conexant Shares Fall After Widening 3rd-Quarter Loss
Shares of Conexant Systems Inc. fell sharply in midday trading on Friday after the company reported a wider third-quarter loss, and an analyst downgraded the stock.
Conexant, which has traded between $1.57 and $3.90 over the last year, was down 24 cents, or 12.5 percent, to $1.69 on the Nasdaq.
On Thursday the company said it lost $67.1 million, or 14 cents per share, which ballooned from a loss of $32.2 million, or 7 cents per share, last year.
Credit Suisse analyst Jeff Loff downgraded the stock to "Underperform" from "Neutral" and said revenue growth and margin expansion were limited. He also noted that the company has $537 million in debt due within the year and just $375 million in cash.
"The ability of cash flow from operations to help close this gap is now weaker and we expect Conexant to raise $100 million to $200 million of debt this year to meet its obligations," Loff wrote in a note.
Baird analyst Tristan Gerra, who has an "Outperform" rating on the stock, took a different approach, calling it a "great leverage story."
"Despite a third-quarter slowdown reducing our estimates, we see significant earnings per share leverage to the story, both from top-line (new product ramps in 2007) and profitability standpoints, while deleveraging in the first half of 2007 should help the valuation," Gerra wrote in a note to clients.
Gerra lowered his estimates for fiscal 2006 revenue and earnings to $971.5 million and 12 cents a share from $990.5 million and 13 cents, and for fiscal 2007 revenue and earnings to $1.05 billion and 18 cents a share from $1.14 billion and 26 cents a share. |
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| Friday, July 28, 2006 |
Rackable Systems Shares Plunge on Weak Outlook, Which Prompts Analyst Downgrade
- Rackable Systems Inc. shares suffered Friday as investors rushed to the exit after the maker of rack-mounted computer servers issued weak guidance based on expectations of a declining market and increased pricing pressure.
Shares plunged $13.94, or 40 percent, to $20.97 in afternoon trading, on the Nasdaq. Trading volume surged to 19.3 million shares, well above a daily trading average of 1.4 million shares. The stock has traded in a 52-week range between $12.19 to $56 and is up 23 percent since the beginning of the year to a Thursday close at $34.91.
Piper Jaffray & Co. analyst Troy D. Jensen downgraded the stock to "Market Perform" from "Outperform" based on the company's expectation of slowed growth and increased operating expenses. He also lowered his target price to $27 from $44.
"We believe numerous challenges confront Rackable including pricing pressures, slowing macroeconomic environment, product differentiation sustainability, and diversification into new vertical markets," the analyst wrote.
Rackable Systems said its second-quarter profit more than quadrupled on surging revenue due to higher sales of storage products and interest income.
Jensen of Piper Jaffray noted that the second quarter was marked by significant sales to new customers and growth in its storage product and scale out series servers, which offset revenue declines from Rackable's core servers.
He said pricing pressure for certain components could reduce gross margins ahead, but said the company should be able to sustain long-term growth.
RBC Capital Markets analyst Thomas Curlin reiterated an "Outperform" rating in a client note but reduced his target price to $40 from $60.
Pacific Crest analyst Brent Bracelin also reaffirmed an "Outperform" rating and lowered his target price to $57 from $40. He said the company's guidance appears conservative.
In a conference call Thursday, the company said it expects full-year earnings between 98 cents to $1.02 per share, excluding items, on revenue between $345 million to $355 million. Wall Street projects 96 cents per share on $345.1 million in revenue. |
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Genesis Microchip (Nasdaq GNSS) shares surged $1.95, or more than 17%, to $13.16. On Thursday, the maker of microchips used in flat-panel displays and digital TVs reported a 30% drop in its first-quarter profit, but its earnings still came in ahead of Wall Street analysts forecasts.
The company's profit fell to $1.4 million, or 4 cents a share, from $2.1 million, or 6 cents a share, a year ago, while revenue declined to $55.9 million from $59.8 million. Excluding stock-compensation and other items, Genesis said it would have earned 11 cents a share. By that measure, Wall Street analysts had forecast Genesis to break even on a per-share basis. |
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| Thursday, July 27, 2006 |
Navteq Net Income Down in Second Quarter, Below Wall Street Estimates
CHICAGO (AP) -- Digital map database company Navteq Corp. said Wednesday second-quarter profit dipped and blamed "unfavorable" trends and delays in product launches.
The company earned $23.8 million, or 25 cents per share, compared with $25.3 million, or 27 cents per share, last year. Revenue rose 11 percent to $135.9 million from $122.8 million.
Results fell short of Wall Street expectations, with analysts polled by Thomson Financial expecting earnings of 28 cents per share on revenue of $142.4 million.
"We faced a number of challenges in the second quarter, including unfavorable car sales trends and delays in customer product launches, which prevented us from achieving the results we expected," said Judson Green, president and chief executive, in a statement.
Green said the company will continue to invest in its database and expects better performance during the second half of the year.
Navteq lost $8.22, or 23.73%, to $26.54 in Thursday's trading. |
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Shares of Plexus Corp. plunged Thursday after the Neenah electronics manufacturer issued a fourth-quarter outlook that fell far short of analysts' forecasts.
Plexus president and chief executive officer Dean Foate said after markets closed Wednesday that fourth-quarter earnings are expected to be in the range of 46 cents to 50 cents per share on revenue of $390 million to $405 million. Analysts, however, were expecting earnings of 56 cents per share on revenue of $418.3 million, according to TheStreet.com.
Shares of Plexus (NASDAQ PLXS) were down $11.33, or nearly 34 percent, at $22.27 in midday trading Thursday.
Plexus reported net income for the fiscal third quarter ended July 1 of $25.1 million, or 53 cents per share. That compares with a net loss of $21.5 million, or 50 cents per share, in the same period a year ago. The previous year's results include restructuring costs of $27.6 million.
Net sales for Plexus rose 27 percent to $397.4 million from $313.7 million in the quarter.
Plexus also said Wednesday that it will close a plant in Maldon, England, in late 2006 or early 2007 in an effort to cut costs.
The closure will affect 77 employees, the contract electronics manufacturer said. Production from the plant will transfer to a plant in Kelso, Scotland.
The move will result in total restructuring charges of $1 million related to severance, retention bonuses and asset impairment. About $400,000 of the charge is being reported in its third quarter results released Wednesday. |
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Navteq Corp., down $7.65 at $27.11
The digital map company slumped on weak quarterly results, citing unfavorable car sales trends and product delays.
Deluxe Corp., up $2.75 at $16.50
The provider of printing services posted a second-quarter loss and cut its dividend by 37.5 percent, but investors cheered plans to cut at least $150 million in costs by the end of 2008.
Checkpoint Systems Inc., down $6.14 at $15.95
The maker of retail and merchandise software said its earnings sank 45 percent last quarter on a shortfall in its security business.
NASDAQ
Symantec Corp., up $1.43 at $17.23
The antivirus software maker posted a better-than-expected quarterly profit, helped by greater revenue from last year's acquisition of Veritas Software.
Akamai Technologies Inc., up $6.74 at $36.74
Three analysts upgraded the online media company to "buy" on potential growth from accelerating broadband adoption and demand for digital content.
Plexus Corp., down $10.36 at $23.24
The electronics manufacturer swung to a third-quarter profit, but warned that fourth-quarter sales would miss analysts' estimates. |
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Baidu.com Inc. (BIDU) said quarterly profit nearly quintupled and forecast third-quarter sales would almost triple, but its stock fell sharply as China's Web search leader succumbed to lofty expectations.
The Beijing-based company posted a second-quarter profit of $7.3 million (58.5 million yuan), or 21 cents per diluted share, that far surpassed the year-earlier quarter's $1.5 million.
However, the results fell squarely in line with analysts' consensus forecast and appeared to disappoint investors looking for the company to outperform, as it has in previous quarters.
Baidu shares slumped about 15 percent to $78.50 in after hours trade, after more than doubling to about $92 since sinking to a post-IPO low of $45.15 in early February.
"The numbers are quite good. But investors have been buying shares and have their own expectations," said Qiu Changhua, an Internet analyst with U.S.-based Forun Technologies.
"At these prices it is still attractive," said Qiu.
Revenue jumped 175 percent to 191.6 million yuan, or $24.0 million. Analysts were looking for revenue, on average, of $23.4 million, with forecasts ranging from $22.2 million to $24.4 million, according to Reuters Estimates.
Analysts were looking for a net profit, on average, of 16 cents per share. Excluding one-time items, the consensus was for 21 cents per share, according to Reuters Estimates.
Q3 PROFITS SLIPPING Q/Q?
Baidu also forecast that third-quarter revenue would range between $30 million and $31 million, at the top end of analysts' expectations, which ranged between $27.6 million and $30.9 million, according to Reuters Estimates.
However, analysts are expecting profits at Baidu -- which saw its shares shoot above $150 in the days after going public a year ago -- to slip slightly in the third quarter to $0.19 from the last quarter, but much higher than the $0.03 earned in the year-earlier period.
The company commands just under half of the traffic from China's more than 110 million Web surfers, versus an estimated 30 percent for Google, which holds a dominant lead in the overall global market, according to analysts' reports.
Baidu results contrast with major U.S. Internet players who are generating hundreds of times more revenue but at far slower growth rates. Google Inc. posted a 77 percent rise in quarterly revenue while Yahoo Inc. grew 26 percent.
The company said it was still not focusing on profits and said revenue growth and expansion remained its priorities.
"We are guiding very strong revenue growth going forward," Shawn Wang, Baidu's chief financial officer.
"However, we want to caution that we are making aggressive investment in sales and marketing. We are rapidly building a large direct sales presence."
"All of which are likely to have a near term negative impact on the bottom line," said Wang.
Revenues for Chinese Internet company Sohu.com Inc. are expected to grow about 30 percent from a year earlier when it posts results later this week and SINA.com is forecast to grow just 7 percent.
But Baidu is spending more to fend off Google -- which just this year launched a Chinese version of its Web search system -- along with Yahoo and domestic Chinese rivals, analysts say. (US$=7.98 yuan) |
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| Wednesday, July 26, 2006 |
SigmaTel Shares Surge on Smaller-Than-Expected 2nd-Quarter Loss
-- Shares of audio chip maker SigmaTel Inc. were up sharply in Wednesday afternoon trading, a day after the company reported better-than-expected results for the second quarter.
Excluding a tax benefit and other expenses, the company reported a quarterly loss of $3.3 million, or 10 cents per share -- beating analyst expectations of a much wider loss of 51 cents per share. Revenue fell 37 percent to $43.8 million from $69.6 million a year ago, but still came in above the Wall Street's $42 million consensus estimate.
Shares of Sigmatel, which have traded between $3.45 and $21.58 over the last year, were up $1.12, or 29.1 percent, at $4.97 in afternoon trading on the Nasdaq. The stock traded as high as $5.38 earlier in the day.
While investors seemed to cheer the results, analysts weren't quite so bullish.
Jefferies & Co. analyst Adam Benjamin raised his price target to $4.50 from $4 on the news, citing better fundamentals and improved liquidity, but maintained a "Hold" rating on the stock.
"We remain neutral as we believe SigmaTel must reduce operating expenditure levels, regain lost MP3 share and ramp Oasis and Protocom," Benjamin wrote in a note.
Both Protocom and Oasis are semiconductor companies SigmaTel acquired over the last year.
American Technology Research analyst Shaw Wu, who has a "Sell" rating on the stock, was even more bearish.
"We remain concerned with SigmaTel's ability to continue as an ongoing concern if it does not reduce its high cash burn (rate)," Wu wrote in a note. |
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| Tuesday, July 25, 2006 |
Agere Systems Inc., a maker of chips for telecom equipment and hard disk drives, said Tuesday that fiscal third-quarter earnings declined due to lower revenue and tax benefits, although results came in ahead of expectations.
Net income dropped to $47 million, or 27 cents per share, from $120 million, or 65 cents per share, in the year-ago period. Excluding tax benefits of $27 million in the latest quarter and $120 million last year, the company earned $37 million, or 22 cents per share, compared with $43 million, or 23 cents per share, for the 2005 period.
Revenue slid to $382 million from $433 million last year.
The results beat analyst expectations for operating profit of 16 cents per share, though Wall Street was looking for higher sales of $399.9 million, according to a poll by Thomson Financial.
Separately, the company authorized a new $200 million share buyback plan.
Richard Clemmer, president and CEO, said, "Agere Systems turned in a solid third quarter, demonstrating the leverage we have created in our business model and the clear progress we are making in our turnaround plan. Moreover, we expanded our customer base during the quarter, giving us a firm foundation for driving revenue growth."
Looking ahead, Agere said it forecasts operating earnings of 21 cents to 26 cents per share on revenue of $375 million to $400 million. Wall Street is predicting earnings, excluding items, or 21 cents per share on higher sales of $405.6 million. |
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Shares of Atmel (ATML) were among technology's losers Tuesday, dropping 14% after the chipmaker postponed the release of its second-quarter results amid a review into its past stock-option grants.
Atmel said it won't release its second-quarter results until the independent investigation of its option practices and timing has been completed. The company, which planned to release earnings Tuesday, said it doesn't expect to complete the option investigation by the Aug. 14 extended due date for quarterly report filings with the Securities and Exchange Commission. Shares were trading down 69 cents to $4.13.
Shares of Agere Systems (AGR) jumped 23% after the chipmaker posted better-than-expected third-quarter earnings. For the period ended June 30, the company earned $47 million, or 27 cents a share, on revenue of $382 million. Excluding items, Agere earned $37 million, or 22 cents a share. Analysts anticipated earnings of 16 cents a share on revenue of $399.9 million. A year earlier, the company posted adjusted earnings of $43 million, or 23 cents a share, on revenue of $433 million.
Looking ahead, Agere sees fiscal fourth-quarter adjusted earnings of 21 cents to 26 cents a share, with revenue of $375 million to $400 million. Analysts project earnings of 21 cents a share on revenue of $405.6 million. Shares were up $2.75 to $14.75.
Zoran (ZRAN) tumbled 30% after the chipmaker posted better-than-expected second-quarter revenue, but warned that third-quarter revenue would be below forecasts. The company reported revenue of $127.9 million, which included $5.6 million from a legal settlement. Without the settlement, the company would have posted revenue of $122.3 million. Analysts polled by Thomson First Call expected a top line of $119.8 million. During the year-earlier period, the company posted revenue, excluding a legal settlement, of $95.1 million.
For the third quarter, Zoran sees revenue of $130 million to $134 million, compared with analysts' forecast of $138.3 million. Zoran said it plans to post its full second-quarter earnings results after it completes a previously announced review of its historical stock-option practices. Shares were trading down $5.92 to $13.81.
Vicor (VICR) shares sank 27% after the maker of modular power components posted lower-than-expected second-quarter results. The company earned $2.9 million, or 7 cents a share, on revenue of $49.2 million. Analysts expected earnings of 9 cents a share and revenue of $50.9 million. During the year-earlier period, Vicor earned $89,000, or less than a penny a share, on revenue of $44.6 million.
"Demand slowed in Q2. Several significant orders due to be booked in Q2 were delayed and the base-level business, consisting of smaller accounts and orders, also suffered from lackluster performance," the company said. "This caused a disappointing book-to-bill ratio and shipment levels that were short of our expectations." Vicor shares recently were trading at $11.07, down $4.06.
Shares of Orckit Communications (ORCT) tumbled 17% after the telecom-equipment maker posted solid second-quarter results, but slashed its full-year projections. For the second quarter, the company earned $294,000, or 2 cents a share, besting analysts' estimate for a loss of 3 cents a share. The company posted revenue of $14.7 million, compared with Wall Street's target of $13 million. During the year-earlier quarter, the company earned $3.9 million, or 21 cents a share, on revenue of $21.8 million.
For the full year, Orckit now sees earnings of 17 cents to 35 cents a share on revenue of $62 million to $68 million. In late April, the company projected earnings of 68 cents to $1.20 a share, with revenue of $80 million to $100 million. Analysts had forecast earnings of 48 cents a share and revenue of $73 million. Orckit blamed the shortfall on lower demand for its products in Japan. Shares were trading down $1.43 to $7.07.
Other technology movers included ATI Technologies (ATYT) , up 10 cents to $19.77; Level 3 Communications (LVLT) , down 36 cents to $4; Microsoft (MSFT) , unchanged at $24; Intel (INTC) , down 6 cents to $17.42; Sun Microsystems (SUNW) , up 1 cent to $4.03; SanDisk (SNDK) , up $5.75 to $45.95; Dell (DELL) , down 4 cents to $20.71; Oracle (ORCL) , down 7 cents to $14.91; Cisco Systems (CSCO) , down 13 cents to $17.82; Yahoo! (YHOO) , down 18 cents to $26.76; Apple Computer (AAPL) , down 52 cents to $60.90; Motorola (MOT) , up 29 cents to $21.41; and Lucent Technologies (LU) , down 4 cents to $2.06. |
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| Monday, July 24, 2006 |
Advanced Micro Devices Inc. said on Monday it would buy Canadian graphics chipmaker ATI Technologies Inc. for $5.4 billion, in what analysts called an aggressive but expensive move to compete with Intel Corp.
The deal will give AMD, the No. 2 supplier of computer processors, better high-end graphics products for mobile computing, gaming and media markets putting pressure on its larger rival Intel.
Under the terms of the pact, AMD will pay $4.2 billion in cash and 57 million shares of AMD common stock. That is about $20.47 for each ATI share, a 24 percent premium over ATI's closing price on Nasdaq on Friday. AMD will take on $2.5 billion in new debt to complete the acquisition.
While there are potential savings from the deal, it also compounds the risk facing AMD, which is embroiled in a bitter price war with Intel, analysts said.
"AMD must take on another significant amount of debt, which could be compounded with even more debt as the firm has laid out an aggressive capacity expansion plan for the next several years," Stifel, Nicolaus & Co. analyst Cody Acree wrote in a note to clients. AMD plans to spend $5 billion to boost capacity.
AMD expects to finance the cash portion of the transaction with a combination of cash and new debt. It has obtained a $2.5 billion term loan commitment from Morgan Stanley Senior Funding to help pay for the pact.
Ratings agencies Standard & Poor's and Moody's Investors Service said on Monday they may cut AMD's credit ratings as a result of the acquisition.
MAKES LITTLE SENSE
Since rumors of a deal first emerged in May, many industry analysts have voiced skepticism, saying it made little financial or strategic sense for AMD to buy ATI outright.
"There's probably the sound of champagne corks being let fly at Intel headquarters right now," said Brian Piccioni, an analyst at BMO Capital Markets. "Basically, AMD has bet the company on this transaction."
AMD shares slipped 4.8 percent to $17.39 on the New York Stock Exchange in late trading, ATI jumped 19 percent to $19.67 and Intel shares rose 1.9 percent to $17.48 on the Nasdaq.
The Shares in ATI rival Nvidia Corp. rose 10 percent to $19.55 as analysts said it may gain more business from Intel after ATI is absorbed into AMD, or even be an acquisition target for Intel.
Active trading in Nvidia's stock options indicate there is "talk that the merger is a positive for the company because it now puts Nvidia in play," said Frederic Ruffy, an analyst at Optionetics, a California-based options education firm.
But Nvidia's vice president of investor relations, Michael Hara, told Reuters the firm saw no need to pursue a merger. Intel declined comment.
ATI is also a big supplier of chipsets -- the cluster of secondary chips and interfaces that surround a computer's processor -- for both AMD and Intel.
An AMD executive told Reuters he expected Intel to "move away from ATI" as a supplier as it is integrated into AMD.
He said there is no plan to reduce research and development spending as a result of the merger, nor any major layoffs.
The acquisition is expected to slightly add to earnings in 2007 and AMD said it will be "meaningfully accretive" in 2008, before the inclusion of acquisition-related charges. It sees a reduction of operating expenses by about $75 million for the combined company by the end of 2007.
But Bank of America analyst Sumit Dhanda said that, while the addition of ATI's revenue will boost AMD's 2007 sales by about $2.9 billion, the acquisition will likely shrink profit margins for AMD over the long term.
ATI Chief Technology Officer Adrian Hartog said he saw short-term opportunities starting in 2007 to grow market share in the "commercial and mobile platforms within the PC space."
ATI said it has agreed to a termination fee of $162 million. The deal is subject to the approval of ATI shareholders and regulators in the United States and Canada. |
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Shares of ATI Technologies (ATYT) were among technology's winners Monday, jumping 17% after the graphics-chip maker agreed to be acquired by Advanced Micro Devices (AMD) for about $5.4 billion in cash and stock.
Based on Friday's closing prices, the deal values ATI at $20.47 a share, a premium of 24%. ATI shareholders will receive $4.2 billion in cash and 57 million shares of AMD stock. AMD expects the deal to be slightly accretive to earnings during 2007 and "meaningfully accretive" to earnings during 2008. The acquisition is expected to close during the fourth quarter. Shares of ATI recently were trading up $2.94 to $19.50, while shares of AMD fell 91 cents, or 5%, to $17.35. Shares of Nvidia (NVDA) , ATI's main rival in the graphic-chip market, rose $1.60, or 9%, to $19.37.
Silicon Labs (SLAB) vaulted 20% after the chipmaker posted better-than-expected second-quarter results. The company earned $10.1 million, or 18 cents a share, on revenue of $123.5 million. Excluding items, the company earned $21.3 million, or 37 cents a share. Analysts polled by Thomson First Call expected earnings of 33 cents a share, before items, on revenue of $118.7 million. A year earlier, the company posted adjusted earnings of $17.2 million, or 31 cents a share, on revenue of $107.2 million.
For the third quarter, Silicon Labs sees revenue of $122 million to $127 million. Analysts project revenue of $124.9 million. The company also announced a $100 million stock buyback plan. Shares were trading up $5.87 to $35.37.
Shares of Radcom (RDCM) jumped 12% after the company posted a big jump in second-quarter earnings. The company, which makes network test- and service-monitoring products for communications-service providers, earned $208,000, or a penny a share. Excluding stock-based compensation costs, the company earned $313,000, or 2 cents a share. During the year-earlier period, which did not includes a stock-options expense, the company earned $103,000, or a penny a share. On the top line, revenue increased to $5.7 million from $4.8 million last year.
Looking ahead, Radcom forecast third-quarter revenue of $6.7 million to $7.1 million. Shares were trading up 23 cents to $2.18.
Verizon Communications (VZ) rose 2% after Verizon Wireless, its joint venture with Vodafone Group (VOD) , said it added 1.8 million new retail customers during the second quarter. The recent gains mark the eighth consecutive quarter in which Verizon Wireless has added more than 1.5 million customers. Of Verizon Wireless' 54.8 million overall customers, some 52.6 million are retail customers. Shares of Verizon Communications were trading up 59 cents to $32.46, while shares of Vodafone rose 63 cents, or 3%, to $21.25.
Shares of Boston Communications (BCGI) , which more than doubled on Friday, tumbled 26% on Monday. On Friday the company agreed to pay Freedom Wireless $55.3 million to settle a patent infringement suit. The payout is much smaller than the $128 million that it was ordered to pay as part of a court ruling in 2005. Boston Communications had previous accrued $64.3 million in estimated losses related to the Freedom litigation. As a result, the company now expects to reverse a portion of the previous recorded loss, resulting in a gain to its operating income. Shares recently were down $1.05 to $2.96.
Other technology movers included Microsoft (MSFT) , up 17 cents to $24.04; Intel (INTC) , up 45 cents to $17.60; Dell (DELL) , up 73 cents to $20.64; Sirius Satellite Radio (SIRI) , up 3 cents to $3.93; Oracle (ORCL) , unchanged at $15.12; Cisco Systems (CSCO) , up 50 cents to $17.96; Sun Microsystems (SUNW) , up 6 cents to $3.89; Apple Computer (AAPL) , up 26 cents to $60.98; Motorola (MOT) , up 90 cents to $21.30; Lucent Technologies (LU) , up 3 cents to $2.07; and JDSU (JDSU) , up 6 cents to $2.14. |
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| Friday, July 21, 2006 |
PMC-Sierra Inc. , a maker of communications and data storage semiconductors, on Thursday reported a loss in the second quarter after a small profit a year ago, citing a research and development charge, amortization of intangible assets, stock-based compensation expenses, and other charges.
PMC-Sierra also issued a revenue forecast for the current quarter and shares of the company fell 2.6 percent in extended trade.
The company said the net loss was $31.3 million, or 15 cents per share, compared with a profit of $529,000 or nil cents per share, a year earlier. Revenue rose by 66 percent to $118.8 million.
Santa Clara, California-based PMC-Sierra said that on a non-GAAP basis, it showed a profit in the latest quarter of 9 cents per share, up from 4 cents per share a year earlier.
Analysts were expecting earnings, excluding one-time items, of 7 cents per share on revenue of $114 million, according to Reuters Estimates.
PMC-Sierra executives said on a conference call to discuss the results that it expects third-quarter revenue of $122 million to $124 million.
Analysts, on average, had expected PMC-Sierra to have third-quarter revenue of $128.1 million.
Shares of PMC-Sierra fell $1.84 (26.36%), to close at $5.14. |
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Shares of Dell (DELL) were among technology's losers Friday, slumping 11% after the computer giant warned that second-quarter results would be below Wall Street's forecast.
The company expects to post earnings of 21 cents to 23 cents a share on revenue of about $14 billion. Analysts polled by Thomson First Call project earnings of 32 cents a share on revenue of $14.23 million. Dell, which had issued a similar warning after the first quarter, said the weaker-than-expected guidance reflects "aggressive pricing in a slowing commercial market worldwide." Dell plans to issue second-quarter results on Aug. 17. Shares were recently trading down $2.46 to $19.64.
Microsoft (MSFT) rose 4% after the company posted better-than-expected fourth-quarter earnings and announced a big tender offer and buyback plan. For the quarter ended June 30, the software giant earned $2.83 billion, or 28 cents a share. Results included a one-time charge of 3 cents a share. Without the charge, the company would have earned 31 cents a share, topping analysts' average estimate by a penny. Microsoft posted revenue of $11.8 billion, above Wall Street's projection of $11.63 billion. During the year-earlier quarter, the company earned $3.7 billion, or 34 cents a share, on revenue of $10.16 billion.
Microsoft also announced a $20 billion tender offer, which will be completed on Aug. 17, the company said. The company will buy shares at prices ranging from $22.50 to $24.75 a share. Additionally, Microsoft said that it would buy $20 billion in stock as part of a repurchase program. The buyback program will expire on June 30, 2011. "With our share repurchase programs announcement today, we reaffirm our confidence and optimism in the long-term future of the company and continue to execute on our strategy of returning capital to shareholders," the company said. Shares were up 95 cents to $23.80.
Shares of PMC-Sierra (PMCS) tumbled 25% after the chipmaker posted in-line second-quarter earnings. For the period ended July 2, the company posted a loss of $31.3 million, or 15 cents a share, on revenue of $118.8 million. Excluding items, the company earned $19.4 million, or 9 cents a share. Analysts expected earnings of 9 cents a share on revenue of $113.6 million. During the year-earlier quarter, the company reported adjusted earnings of $7.2 million, or 4 cents a share, on revenue of $71.5 million. Early Friday, the company was downgraded by Stanford Research to sell from hold. Shares were sinking $1.72 to $5.26.
Cerner (CERN) jumped 14% after the information-technology company posted better-than-expected second-quarter results. The company earned $23.9 million, or 29 cents a share, on revenue of $330.6 million. Excluding stock-based compensation costs, the earnings were 33 cents a share. Analysts expected earnings of 32 cents a share, before items, on revenue of $326.5 million. During the year-earlier quarter, Cerner earned $19.8 million, or 25 cents a share, on revenue of $277.8 million.
For the third quarter, Cerner now expects earnings of 35 cents to 36 cents a share, up a penny from its earlier forecast. The company predicts revenue of $330 million to $340 million. Analysts project earnings of 35 cents a share, with revenue of $338 million. The company's shares were up $4.79 to $39.06.
Shares of Packeteer (PKTR) tumbled 22% after the network-technology company posted second-quarter earnings that were below expectations. Packeteer reported a loss of $805,000, or 2 cents a share, on revenue of $34.2 million. Excluding items, the company earned $4.3 million, or 12 cents a share. Analysts expected earnings of 14 cents a share and revenue of $33.3 million. During the year-earlier quarter, the company posted adjusted earnings of $4.7 million, or 14 cents a share, on revenue of $28.2 million. Shares were trading down $2.25 to $7.88.
Tessera Technologies (TSRA) rose 10% after the company signed a license pact with Micron Technology (MU) and raised its full-year revenue estimate. Under the agreement, Micron will pay Tessera $30 million for a license to Tessera's semiconductor-packaging technology. The move settles outstanding litigation between the companies.
Tessera raised its full-year revenue forecast to $140 million to $142 million to reflect the new agreement and its recent acquisition of Digital Optics. The company's previous guidance called for full-year revenue of $118 million to $122 million. Analysts target a top line of $121 million. Tessera shares were up $2.79 to $30.44. Micron shares, meanwhile, fell 24 cents, or 2%, to $14.30.
Other technology movers included Intel (INTC) , up 1 cent to $17.11; Cisco Systems (CSCO) , down 29 cents to $17.59; Broadcom (BRCM) , down $2.96 to $23.39; Sun Microsystems (SUNW) , down 1 cent to $3.93; JDSU (JDSU) , down 7 cents to $2.05; Lucent Technologies (LU) , down 4 cents to $2.05; Applied Materials (AMAT) , down 36 cents to $14.55; Oracle (ORCL) , down 5 cents to $15.07; and Sirius Satellite Radio (SIRI) , up 3 cents to $4.02. |
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| Wednesday, July 19, 2006 |
Apple profit rises 48 percent
SAN FRANCISCO - Apple Computer Inc. (NASDAQ:AAPL) on Wednesday posted a 48 percent increase in quarterly net income as it sold more iPod digital music players and Intel Corp.-powered (NASDAQ:INTC) Macintosh computers.
Apple said net income for its fiscal third quarter, ended July 1, rose to $472 million, or 54 cents per share, from $320 million, or 37 cents per share, a year earlier. Revenue rose 24 percent to $4.37 billion from $3.52 billion.
Analysts expected Apple to earn 44 cents per share, on average, within a range of 40 cents to 49 cents, on revenue of $3.68 billion, according to Reuters Estimates.
While sales of iPods are still rising at a respectable clip, concerns of a slowing sales growth rate have arisen in recent months, and shares of Apple are down some 24 percent since early May.
Based on Tuesday's closing prices, Apple shares so far this year have declined 26 percent, compared with an 12 percent decline in the Morgan Stanley High Technology Index, of which Apple is a component. Apple stock more than doubled in 2005, after tripling in 2004, largely on booming sales of the iPod. |
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Yahoo! (YHOO) shares tumbled more than 20% after the Internet company posted mixed second-quarter results and warned that it would delay the rollout of its search-engine upgrade. The company posted earnings of $164 million, or 11 cents a share. Revenue, excluding the money that it pays to its search-advertising partners, came in at $1.12 billion. Analysts expected earnings of 11 cents a share on revenue of $1.14 billion. A year earlier, the company earned $754.7 million, or 51 cents a share, on revenue of $875.1 million.
As for the delay of the search-engine upgrade, Yahoo! now sees the upgrade being delivered during the fourth quarter instead of the third quarter. Shares were trading down $6.49 to $25.75.
Shares of Digitas (DTAS) were among technology's losers Wednesday, plunging 23% after the interactive marketing and services firm posted mixed second-quarter results and warned that third-quarter results would be below expectations.
For the second quarter, the company earned $13.5 million, or 14 cents a share, on fee revenue of $100.5 million. Excluding items, Digitas earned $17 million, or 17 cents a share. Analysts polled by Thomson First Call expected earnings of 16 cents a share on revenue of $102.2 million. During the year-earlier period, the company posted adjusted earnings of $13.3 million, or 14 cents a share, on revenue of $87.6 million.
Digitas sees third-quarter adjusted earnings of 10 cents to 13 cents a share, with fee revenue of $93 million to $97 million. Analysts project earnings of 17 cents a share and revenue of $106.3 million. "While I am disappointed in our reduced near-term outlook, due to a handful of specific client challenges, our largest and longest-standing client relationships remain strong," the company's CEO said. Shares were trading down $2.39 to $7.84.
ADC Telecommunications (ADCT) dropped 11% after the telecom equipment maker warned that third-quarter results will be well below Wall Street's forecast. For the period ending July 28, the company sees earnings, excluding items, of 25 cents to 28 cents a share. Analysts project earnings of 33 cents a share. ADC anticipates revenue of $330 million to $335 million, below Wall Street's target of $368.7 million.
"Given the current environment in which our larger wireline and wireless customers are consolidating and integrating operations, these short-term variations can be difficult to plan for and we do not believe they are reflective of the long-term prospects for our business," the company said. Shares recently were trading down $1.58 to $12.78. Shares of Andrew (ANDW) , which is in the process of being acquired by ADC, fell 10 cents to $7.79.
Shares of Datalink (DTLK) jumped 15% after the software company's second-quarter results handily beat expectations. The company earned $2 million, or 18 cents a share, on revenue of $39.8 million. Analysts predicted earnings of 7 cents a share on revenue of $33.5 million. During the year-earlier quarter, the company earned $446,000, or 4 cents a share, on revenue of $28.7 million.
Looking ahead, Datalink sees earnings of 5 cents to 10 cents a share, in line with analysts' forecast of 8 cents. The company projects revenue of $33 million to $37 million, compared with Wall Street's forecast of $34.1 million. Shares were up 99 cents to $7.75.
PLX Technology (PLXT) plummeted 21% after the chipmaker posted disappointing second-quarter earnings. The company earned $281,000, or 1 cent a share, on revenue of $19.4 million. Analysts expected earnings of 2 cents a share and revenue of $19.1 million. During the year-earlier period, the company posted a loss of $732,000, or 3 cents a share, on revenue of $13.2 million.
For the third quarter, PLX anticpates revenue of $19.5 million to $20.5 million. Analysts project revenue of $19.9 million. Gross margins are seen at 57% to 59%, compared with 58% in the second quarter. Shares were trading at $9.25, down $2.52.
Shares of Unisys (UIS) sank 13% after the information technology consulting firm posted a hefty second-quarter loss. The company reported a loss of $194.6 million, or 57 cents a share, on revenue of $1.41 billion. Results included a pretax charge of $141.2 million related to the company's reduction of 1,900 jobs. Analysts expected a loss of 7 cents a share and higher revenue of $1.45 billion. The company's year-earlier loss totaled $27.1 million, or 8 cents a share, on revenue of $1.44 billion.
Unisys' job cuts will bring the total number of planned headcount reductions to about 5,500. The job cuts are projected to result in annualized savings of more than $325 million by the second half of 2007, Unisys said. Shares recently were down 80 cents to $5.35.
Other technology movers included Intel (INTC) , up 14 cents to $18.35; Microsoft (MSFT) , up 38 cents to $23.12; Cisco Systems (CSCO) , up 30 cents to $18.18; Oracle (ORCL) , up 37 cents to $15.09; Lucent Technologies (LU) , up 4 cents to $2.09; JDSU (JDSU) , up 2 cents to $2.22; Applied Materials (AMAT) , up 22 cents to $15.71; Apple Computer (AAPL) , up 25 cents to $53.15; Sun Microsystems (SUNW) , up 8 cents to $3.93; and Dell (DELL) , up 60 cents to $21.94. |
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| Tuesday, July 18, 2006 |
Sanmina-SCI Shares Slide on 3rd-Quarter Warning, Bearish Analyst Notes
NEW YORK -- Shares of electronics manufacturing services provider Sanmina-SCI Corp. got slammed in afternoon trading on Tuesday after the company cut its third-quarter outlook and several analysts published bearish comments on the company.
On Monday the San Jose, Calif.-based company said that due to a less profitable mix in sales, it expected its third-quarter earnings to range from 6 cents to 7 cents per share, down from a previous forecast for earnings of 8 cents to 10 cents per share. Both estimates excluded certain expenses.
Jefferies & Co. analyst Brian White, who has a "Hold" rating on the stock, said he believes the company will continue to be challenged in 2006 "especially in light of market share shifts, a slowing economic environment and disappointing operating leverage," White wrote in a published note to clients.
Merrill Lynch analyst Steven Fox, who has a "Neutral" rating on the stock, said the miss was not a big one, but an emblematic one.
"The details around the miss are emblematic of why we have resisted the Sanmina 'leverage story' in the past couple of years as real leverage proves elusive for a variety of familiar reasons (restructuring, components, and sales and operating execution," Fox wrote in a note.
Fox cut his 2006 earnings estimate to 26 cents per share, down from 31 cents per share, while analysts polled by Thomson Financial currently expect the company to report, on average, earnings of 33 cents per share.
Shares of Sanmina, which have traded between $3.45 and $6.02 over the last year, were down 53 cents, or 12.4 percent, at $3.74 in afternoon trading on the Nasdaq. |
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Shares of Sanmina-SCI (SANM) were among technology's losers Tuesday, slumping 15% after the electronics-manufacturing services company cut its third-quarter earnings and revenue projections.
For the period ended July 1, the company now sees adjusted earnings of 6 cents to 7 cents a share, down from an earlier forecast of 8 cents to 10 cents a share. The company projects revenue of $2.71 billion, at the low end of its previous guidance of $2.7 billion to $2.8 billion. Analysts polled by Thomson First Call project earnings of 9 cents a share on revenue of $2.75 billion. Sanmina blamed the shortfall on a less-favorable product mix, lower-than-expected profitability in its computing business and slower-than-anticipated improvement in its enclosure business.
"While we are disappointed that our financial results for the fiscal third quarter fell short of our expectations, we believe that we have taken the steps necessary to improve on our execution," Sanmina said. Shares were trading down 63 cents to $3.64.
Network Appliance (NTAP) shares rose 2% after the maker of networking gear backed its first-quarter guidance. For the three months ending July 31, the company continues to forecast earnings of 23 cents to 24 cents a share, excluding stock-based compensation costs and amortization of intangible assets. Network Appliance sees sequential revenue growth of 2% to 4%. Analysts project earnings of 24 cents a share and revenue of $615.6 million, or sequential revenue growth of about 3%. Shares were trading up 57 cents to $27.66.
Shares of China TechFaith (CNTF) plunged 24% after the handset-software company slashed its second-quarter earnings and revenue projections. The company expects to post earnings of $4 million, down substantially from its previous view of $8.5 million. The company now projects revenue of $22.5 million, below its earlier forecast of $24 million. Analysts project earnings of $8.5 million, or 19 cents a share, on revenue of $24.1 million.
"While we expected the transition period in our business would be confined to the first quarter, it extended into the second quarter," China TechFaith said. "We are now adding three to four months onto our internal forecasts to reflect the lengthier approval and testing process required by the international carriers for Smartphone and the required quality-testing process of the new international customers for the Handset Design projects." Shares were trading at $9.74, down $2.88.
Nortel (NT) shares rose 5% after the networking gearmaker announced an alliance with Microsoft (MSFT) . The four-year agreement calls for Nortel to be Microsoft's strategic partner for advanced unified communications systems and systems integration, and the companies will deploy each other's technologies in their enterprise networks. "From this transaction, we believe we can capture well beyond $1 billion in new revenue, ramping up with increased momentum through 2009 via professional services, voice products and applications, as well as data pull-through in the enterprise," Nortel CEO Mike Zafirovski said in a statement. Nortel shares were up 10 cents to $2.06. Microsoft was trading at $22.68, up 20 cents.
SimpleTech (STEC) jumped 17% after the chipmaker boosted its second-quarter estimates. The company expects to report earnings of 9 cents to 10 cents a share, up from an earlier view of 5 cents a share. SimpleTech now projects revenue of $78 million to $79 million, up from an earlier forecast of $67 million to $70 million. Analysts predict earnings of 5 cents a share and revenue of $69 million. "During the second quarter, the company experienced stronger-than expected demand in every major product category; in particular, sales of its customized flash memory to OEMs," the company said. SimpleTech plans to release its second-quarter results Aug. 9. Shares were trading up 66 cents to $4.51.
Shares of Digi International (DGII) tumbled 10% after the company posted mixed third-quarter results and offered a disappointing fourth-quarter outlook. For the period ended June 30, the networking-equipment company earned $3.3 million, or 14 cents a share, on revenue of $35.9 million. Excluding stock-based compensation costs, the company earned 16 cents a share. Analysts expected earnings of 14 cents a share and revenue of $36.4 million. A year earlier, Digi earned $2.5 million, or 11 cents a share, on revenue of $30.2 million.
For the fourth quarter, Digi projects earnings, excluding stock-based compensation costs, of 11 cents to 18 cents a share. The company anticipates fourth-quarter revenue of $34.5 million to $39.5 million. Analysts project earnings of 17 cents a share, with revenue of $40.1 million. Shares were down $1.18 to $10.42.
Other technology movers included Lucent Technologies (LU) , down 1 cent to $2.03; Finisar (FNSR) , down 32 cents to $2.68; Intel (INTC) , down 8 cents to $17.76; Cisco Systems (CSCO) , down 29 cents to $17.68; Oracle (ORCL) , up 24 cents to $14.66; JDSU (JDSU) , down 2 cents to $2.03; Apple Computer (AAPL) , up 39 cents to $52.76; and Dell (DELL) , down 50 cents to $21.07. |
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| Monday, July 17, 2006 |
Concurrent Computer Corp. (CCUR) on Monday forecast a fourth-quarter loss wider than analysts' expectations and as part of an ongoing restructuring plan cut 7 percent of its work force.
Shares of the company, which provides on-demand and real-time computing technology, were down about about 5 percent at $1.72 in early morning trade on the Nasdaq.
The company said in a statement while domestic sales of traditional on-demand products were within expectations, it had lower international on-demand revenue due to the timing of some deployments and the delay of a large order expected in the quarter.
Concurrent said it expects a fourth-quarter loss of about 5 cents to 7 cents a share on revenue of $15 million to $17 million.
For the fourth quarter, three analysts on average expect the company to post a loss of 1 cent a share, excluding exceptional items, on revenue of $21.25 million, according to Reuters Estimates.
Concurrent said during the quarter real-time revenue also fell due to lower legacy product sales and delays in government spending.
The company, which is in the process of transitioning its real-time operations into a solely software business, did not disclose details on the job cuts.
Concurrent said it is realigning its cost structure and its business infrastructure around the world.
Shares of Magic Software Enterprises (MGIC) were among technology's winners Monday, soaring 72% after the software company signed a three-year distribution deal with IBM (IBM) .
As part of the deal, Israel-based Magic will bundle IBM's DB2 Express database with its eDeveloper V10 system, which is a business-applications creator. "The DB2 agreement is a further step in strengthening the relationship and the mutual understanding between IBM and Magic," Magic Software said. Shares were trading up $1.02 to $2.43.
Concurrent Computer (CCUR) fell 3% after the company warned that fourth-quarter results would be lower than expected and announced a restructuring plan. The company now sees a fiscal fourth-quarter loss of about 5 cents to 7 cents a share. Concurrent expects revenue for the period ended June 30 to total $15 million to $17 million. Analysts polled by Thomson First Call project a loss of 1 cent a share and revenue of $21.5 million. The company also said that gross margins would be in the mid-40% range. Concurrent blamed the shortfall on international On-Demand sales, which were hurt by the timing of some deployments.
The company also said it cut some 7% of its employees as part of a restructuring plan. "This is part of our ongoing efforts begun approximately 18 months ago to achieve the operating model of a software company and generate shareholder value," the company said. Shares were trading down 6 cents to $1.75.
Shares of Ituran Location and Control (ITRN) rose 9% after the provider of tracking services announced a $10 million share-repurchase program. Ituran did not set a time limit for the repurchase plan and said the program could be suspended from time to time or discontinued altogether. The company will fund the buyback with available working capital. Shares traded up 96 cents to $14.32.
Innovex (INVX) fell 8% ahead of its third-quarter earnings release after the bell. For the period ended June 30, Wall Street predicts the company will post a loss of 8 cents a share on revenue of $39 million. During the year-earlier period, the company reported a pro forma loss of $665,000, or 3 cents a share, on revenue of $60 million. Shares were trading down 31 cents to $3.58.
Shares of Power Integrations (POWI) rose modestly after the chipmaker named a new chief financial officer. The appointment of Rafael Torres is effective July 19. Torres most recently served as CFO of PLX Technology (PLXT) . Torres replaces John Cobb, who resigned in May when the company said that it would likely restate financial results due to discrepancies in stock-option dating. Power Integrations shares were recently up 4 cents to $15.33.
Other technology movers included Intel (INTC) , down 9 cents to $17.79; Lucent Technologies (LU) , down 3 cents to $2.03; Cisco Systems (CSCO) , down 4 cents to $17.90; Apple Computer (AAPL) , up $2.16 to $52.83; Microsoft (MSFT) , up 16 cents to $22.45; JDSU (JDSU) , up 1 cent to $2.11; Oracle (ORCL) , up 1 cent to $14.30; Sun Microsystems (SUNW) , down 1 cent to $3.87; Sirius Satellite Radio (SIRI) , up 9 cents to $4.12; Applied Materials (AMAT) , up 3 cents to $15.45; and Dell (DELL) , down 14 cents to $21.76. |
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| Wednesday, July 12, 2006 |
Intergraph Raises 2nd-Quarter Operating Income and Sales Outlook
HUNTSVILLE, Ala. -- Intergraph Corp., a mapping and design software maker, said late Tuesday it expects second-quarter results to top previous guidance.
Operating income for the quarter is expected to range from $11.3 million to $12.3 million, up from previous guidance of $5 million to $7 million.
Quarterly revenue is now expected to range between $151 million and $153 million, ahead of a previous forecast for $145 million to $147 million.
Operating income for the full year is now expected to be $48.6 million to $52.6 million, up from earlier guidance for $42.8 million to $47.8 million.
The company also backed its previous full-year revenue projection for $600 million to $610 million.
"The increased financial guidance reflects better than anticipated second quarter results and continued operating improvements in both our PP&M (power process and marine)and SG&I (Security, Government & Infrastructure) divisions," President and Chief Executive R. Halsey Wise said in a statement.
Shares of Intergraph were trading at $33 in the premarket session, up $2.38, or 7.8 percent from Tuesday's closing price of $30.62 on the Nasdaq. |
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Shares of Secure Computing (SCUR) were among technology's losers Wednesday, plunging 34% after the maker of network-security products slashed its second-quarter earnings and sales guidance.
The company now sees adjusted earnings, which excludes items, of 5 cents to 6 cents a share, down from an earlier view of 10 cents to 12 cents a share. The company now predicts sales of $38.5 million to $39 million, down from an earlier forecast of $43 million to $45 million. Analysts polled by Thomson First Call project earnings of 11 cents a share on sales of $44.2 million.
Separately, Secure Computing said that it agreed to buy privately-held messaging-security company CipherTrust for $273.6 million in cash and stock. The purchase price consists of $185 million in cash, 10 million shares of Secure Computing stock,and a $10 million seller note that is tied to performance obligations. CipherTrust is expected to contribute sales of about $15 million to $20 million to Secure Computing's top line during 2006 and $80 million in sales during 2007. The deal is expected to be accretive to adjusted earnings during the second half of 2007. Shares of Secure Computing recently were trading down $2.78 to $5.29.
Intergraph (INGR) shares jumped 13% after the software company boosted its second-quarter projections. The company now sees operating income of $11.3 million to $12.3 million, up from an earlier forecast of $5 million to $7 million. Excluding a restructuring charge, the company expects operating income of $17 million to $18 million, up from an earlier view of $10.5 million to $11.5 million. Intergraph also raised its revenue estimate to $151 million to $153 million from an earlier forecast of $145 million to $147 million. Analysts project revenue of $145.9 million. Intergraph shares were up $4 to $34.62.
Shares of Benchmark Electronics (BHE) rose 2% after the contract electronics manufacturer said that second-quarter results would exceed expectations. The company now sees earnings topping its previous guidance of 36 cents to 39 cents a share. The company also expects to post sales above its prior forecast of $630 million to $660 million. Analysts project earnings of 38 cents a share and sales of $653.2 million. Benchmark, which didn't provide a reason for the improved outlook, plans to issue second-quarter results on July 20. Shares were trading up 65 cents to $23.08.
Shares of Syntax-Brillian (BRLC) jumped 21% after the maker of high-definition televisions said that fourth-quarter and full-year revenue would be better than expected. For the fourth quarter ended June 30, the company expects to post revenue at or above the high end of its earlier guidance of $50 million to $58 million. Gross margins, meanwhile, are now seen at or above the high end of the previous forecast of 10% to 12%. Analysts project revenue of $53 million.
For its full fiscal year, Syntax-Brillian expects revenue at or above the high end of previous guidance of $180 million to $190 million. Gross margins will be at or above the high end of previous guidance of 11% to 13%. Analysts project fiscal 2006 revenue of $186.2 million. Shares were trading at $3.32, up 58 cents.
Tut Systems (TUTS) plunged 36% after the communications-equipment maker warned that second-quarter revenue would be well below expectations. The company projects revenue of about $8.2 million. Analysts, meanwhile, had forecast revenue of $12.7 million. Tut said that a number of potential new customers extended their purchase decisions, while revenue from certain new products was hurt by production issues. Shares were trading down 83 cents to $1.48.
Other technology movers included Sun Microsystems (SUNW) , up 5 cents to $4.05; Microsoft (MSFT) , down 36 cents to $22.74; JDSU (JDSU) , up 8 cents to $2.19; Lucent Technologies (LU) , up 4 cents to $2.23; Intel (INTC) , down 18 cents to $18.49; Cisco Systems (CSCO) , down 13 cents to $18.56; Ciena (CIEN) , up 9 cents to $4.25; Apple Computer (AAPL) , down 55 cents to $55.10; and Applied Materials (AMAT) , down 17 cents to $15.97. |
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| Tuesday, July 11, 2006 |
July 11 - Intevac Inc. (Nasdaq IVAC) on Tuesday said it received orders for 11 magnetic disk sputtering systems which will help it exceed the high end of its previous revenue outlook for 2006.
The eleven 200 Lean systems are scheduled for delivery in fourth quarter this year and first quarter next year, the company said in a statement.
On May 1, the company had said it expected fiscal year 2006 revenue of $180 million to $205 million.
According to Reuters Estimates, four analysts on average expect the company to report revenue of $201.5 million for 2006.
Shares of the company were up more than 17 percent to $25.35 in Tuesday's trading on the Nasdaq. |
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Shares of Intevac (IVAC) were among technology's winners Tuesday, jumping 11% after the company said it received orders for 11 of its disk-sputtering systems.
As a result of the orders, Intevac expects 2006 revenue to top expectations. "These tools are scheduled for delivery in the fourth quarter this year and first quarter next year," the company said. "With these orders, we have now booked enough systems to not only exceed the high end of our May 1 revenue guidance for 2006 but also provide an excellent start for 2007," the company said. Analysts polled by Thomson First Call project 2006 revenue of $197.3 million. Intevac shares were trading up $2.28 to $23.90.
Flir Systems (FLIR) soared 22% after Textron's (TXT) Bell Helicopter unit selected the thermal imaging company's airborne multi-sensor system for its armed reconnaissance helicopter program. The system, which will be used by the Army, incorporates an advanced thermal imager, a CCD-TV camera, a laser designator and a laser rangefinder. Financial terms of the deal were not disclosed. Flir shares were higher by $4.73 to $26.37.
Shares of Perficient (PRFT) rose 7% after the information technology consulting firm lifted its second-quarter revenue projection. The company expects to post revenue of $36.6 million to $37.7 million, up from an earlier view of $31 million to $32.8 million. Analysts project revenue of $32.8 million. "Organic growth continued to accelerate in Q2," the company said. "Utilization rates are high and we're adding billable resources to address our existing project backlog and pipeline." Shares were up 85 cents to $12.98.
Lucent (LU) fell 4% after the telecom-equipment company warned that third-quarter results would be below Wall Street's forecast. For the period ended June 30, the company sees earnings of 2 cents a share on revenue of $2.04 billion. Analysts, meanwhile, project earnings of 4 cents a share and revenue of $2.34 billion. A year earlier, Lucent reported earnings of 7 cents a share on revenue of $2.34 billion. "During the third quarter, our North American mobility business was adversely impacted by a slowdown in spending on some of our current-generation wireless solutions," the company said. Lucent plans to report its third-quarter results on July 26. Shares were trading down 10 cents to $2.24.
Shares of Key Tronic (KTCC) vaulted 41% after the electronics manufacturing services company boosted its fourth-quarter estimates. For the period ended June 30, the company now sees earnings of 18 cents to 20 cents a share, up from an earlier forecast of 7 cents to 12 cents a share. The company raised its revenue forecast to $52 million from an earlier view of $46 million to $50 million. Key Tronic attributed the better outlook to strong growth in demand from a number of existing customers and strong factory utilization and manufacturing efficiencies. Shares were trading at $5.94, up $1.74.
Other technology movers included JDSU (JDSU) , down 5 cents to $2.11; Microsoft (MSFT) , down 36 cents to $23.14; Cisco Systems (CSCO) , down 52 cents to $18.45; Intel (INTC) , down 3 cents to $18.15; Sun Microsystems (SUNW) , up 5 cents to $3.87; Sirius Satellite Radio (SIRI) , up 2 cents to $4.30; Oracle (ORCL) , down 17 cents to $14.42; Applied Materials (AMAT) , down 8 cents to $15.71; Apple Computer (AAPL) , up 8 cents to $55.08; and EMC (EMC) , up 5 cents to $10.46. |
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| Monday, July 10, 2006 |
| Standard Microsystems (NASDAQ SMSC) shares rose 22% Monday after the company topped earnings estimates for the first quarter and provided an upbeat forecast for the second quarter. The New York-based chip services company said it earned $8.6 million, or 37 cents a share, in the first quarter, up from $3 million, or 15 cents a share, in the same period a year earlier. Excluding special items, the company earned $7.6 million, or 33 cents a share, compared with $4.6 million, or 23 cents a share, a year ago. Revenue rose 25% to $86.1 million. The average estimate of analysts polled by Thomson First Call was for earnings of 24 cents a share on revenue of $83.8 million. The company expects second-quarter revenue of $92 to $96 million and adjusted earnings of 30 to 36 cent a share, also ahead of estimates. Shares were last trading up 21.6% at $24.90. |
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Shares of Standard Microsystems (SMSC) were among technology's winners Monday, soaring 20% after the chipmaker posted better-than-expected first-quarter results and gave a second-quarter guidance ahead of Wall Street's forecast.
For the three months ending May 31, the company earned $8.6 million, or 37 cents a share, on revenue of $86.1 million. Excluding items, Standard Microsystems earned $7.6 million, or 33 cents a share. Analysts polled by Thomson First Call expected earnings of 24 cents a share on revenue of $83.8 million. During the year-earlier period, the company earned $3 million, or 15 cents a share, on revenue of $68.8 million. "SMSC turned in a quarter of impressive year-over-year growth," the company said. "Revenues increased by 25% from the same period last year due to strong design ramps and consumer market penetration."
Looking ahead, Standard Microsystems sees second-quarter earnings of 32 cents to 36 cents a share, before items. The company anticipates revenue of $92 million to $96 million. Analysts project earnings of 29 cents a share on revenue of $87.4 million. Shares were trading up $4.10 to $24.57.
Kronos (KRON) slumped 21% after the software company lowered its fiscal third-quarter estimates. For the quarter ended July 1, the company expects to report earnings of 30 cents to 33 cents a share, down from an earlier view of 32 cents to 36 cents a share. Kronos now sees revenue of $140 million to $141.5 million, below an earlier forecast of $145 million to $149 million. Analysts project earnings of 35 cents a share and revenue of $147.1 million. "Our financial performance this quarter did not meet our guidance. Notwithstanding these results, we believe the pipeline for future business is solid and our competitive position remains strong," Kronos said. Shares were down $7.25 to $27.37.
EMC (EMC) shares were down 2% after the storage-software company said second-quarter results would miss expectations. The company estimated revenue of $2.575 billion, below its guidance at least $2.66 billion. EMC expects to report net earnings of 12 cents a share, including charges of 2 cents a share related to options expense, 2 cents from amortization and a 1 cent tax benefit. The company previously had forecast earnings of 13 cents a share, including all items. EMC said it had difficulty meeting demand for its new Symmetrix systems. Shares were down 24 cents to $10.94.
Shares of ScanSource (SCSC) rose 8% after the maker of bar-code scanners projected fourth-quarter revenue above analysts' forecast. For the period ended June 30, the company estimates revenue of $453 million to $461 million. Analysts project revenue of $433 million. A year earlier, the company posted revenue of $381.2 million. ScanSource will report its fourth-quarter results on Aug. 17. Shares were trading up $2.31 to $29.90.
EMS Technologies (ELMG) tumbled 20% after the maker of wireless communications products slashed its 2006 earnings guidance and warned that second-quarter earnings would be weaker than expected. The company now sees 2006 earnings of 70 cents to 80 cents a share, down from an earlier view of 96 cents to $1.06 a share. Analysts project earnings of $1.01 a share. EMS blamed the shortfall on "developing uncertainty" over the timing of orders at its wireless division.
As for the second quarter, EMS said that earnings would be below expectations. "We still expect the company to be profitable in the second quarter, although not at the level that analysts have forecast," EMS said. Analysts had predicted earnings of 23 cents a share. EMS shares were trading at $15.32, down $3.83.
Shares of Network Equipment Technologies (NWK) rose 9% after the networking company lifted its first-quarter revenue guidance. The company now sees revenue of $17.2 million to $17.7 million, up from an earlier forecast of about $14 million. "In our fiscal first quarter, we saw an increase in our government business that positioned us well going into this current quarter, historically a strong quarter due to the federal government's year end," the company said. The company plans to issue first-quarter results on July 26. Shares were trading up 28 cents to $3.39.
Other technology movers included Lucent Technologies (LU) , down 2 cents to $2.35; Sun Microsystems (SUNW) , down 1 cent to $3.90; Microsoft (MSFT) , up 30 cents to $23.60; Intel (INTC) , down 6 cents to $18.50; Oracle (ORCL) , up 13 cents to $14.91; Sirius Satellite Radio (SIRI) , down 8 cents to $4.33; Level 3 Communications (LVLT) , up 10 cents to $4.50; Cisco Systems (CSCO) , down 12 cents to $19.27; Apple Computer (AAPL) , up 68 cents to $56.08; and JDSU (JDSU) , unchanged at $2.31. |
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| Friday, July 07, 2006 |
WebMethods sees loss in first quarter, shares plunge
July 7 - WebMethods Inc. on Friday forecast a first-quarter loss as it failed to close some expected transactions, and the business integration software provider lost almost a third of its market value in morning trade.
The company now expects to report a loss of 12 cents to 15 cents a share for its first quarter ended June 30, compared with its April 27 forecast for a profit of 1 cent to 5 cents.
WebMethods also cut its revenue estimate for the quarter to between $44.0 million and $45.5 million from its previous forecast of between $51 million and $53 million, the company said in a statement.
The company had an unusual number of mid-sized and large transactions, particularly in North America, where the customers required additional steps which it failed to anticipate, Chief Executive David Mitchell said.
"We don't believe that our performance in the last quarter was a result of market, competitive or economic factors," Mitchell said on a conference call.
The loss estimate includes about $600,000 on amortization of intangible items, $2.7 million related to stock-based compensation and $200,000 of income tax expense.
Analysts on average expect the company to earn 7 cents a share before special items for the quarter on revenue of $52.5 million, according to Reuters Estimates.
Mitchell said almost all the opportunities it failed to close in the last quarter remained in the company's pipeline and it would continue to aggressively pursue them.
Shares of the company were down $2.65 at $6.93 in morning trade on the Nasdaq after falling to $6.37 soon after the market opened for trading.
WebMethods will report its results on July 27. |
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Shares of WebMethods (WEBM) were among technology's losers Friday, plunging 26% after the software company slashed its first-quarter estimates.
For the period ended June 30, the company now sees a first-quarter loss of 12 cents to 15 cents a share, compared with an earlier view that called for a profit of 1 cent to 5 cents a share. The company now projects revenue of $44 million to $45.5 million, down from an earlier forecast of $51 million to $53 million. Analysts polled by Thomson First Call project earnings of 7 cents a share and revenue of $52.5 million. WebMethods also lowered its forecast for license revenue to $11.5 million to $12.5 million from an earlier view of $18.5 million to $20 million.
"We are obviously disappointed with our first-quarter results," the company said. "Our preliminary analysis indicates that we failed to effectively anticipate additional steps in the customer-procurement processes associated with a number of our forecasted transactions." WebMethods plans to release its first-quarter results on July 27. Shares were trading down $2.54 to $7.04.
O2Micro International (OIIM) slumped 15% after the company projected second-quarter revenue below expectations. The company, a supplier of security components and systems to the computer and communications industries, estimated a sequential sales decline of 3% to 4%. Based on first-quarter revenue of $29.1 million, the projection implies second-quarter revenue of $27.9 million to $28.2 million. Analysts had forecast revenue of $30.4 million.
O2Micro blamed the weaker-than-expected estimate on a slowdown in sales of LCD monitors, LCD TVs and notebooks. O2Micro also expects to post a loss during the quarter. The company said that its results were hurt by higher-than-expected litigation costs and an impairment loss from its investment in CSMC Technologies. Analysts project earnings of 4 cents a share. Shares were trading down $1.19 to $6.68.
Shares of Business Objects (BOBJ) plummeted 25% after the software company cut its second-quarter earnings and revenue forecast. The company expects adjusted earnings, which excludes items, of 25 cents to 28 cents a share, with revenue of $287 million to $291 million. Previously, the company projected earnings of 30 cents to 33 cents a share on revenue of $295 million to $300 million. Analysts predict earnings of 33 cents a share on revenue of $298.5 million. Business Objects expects license revenue of $116 million to $118 million and services revenue of $171 million to $173 million.
"We are disappointed with our performance this quarter," Business Objects said. "Despite total revenue growing year-over-year, our license revenue was below expectations, due in part to a lower closing rate on large transactions." The company said that it was also hurt by declining revenue in the European and Asia-Pacific regions. Shares were trading down $6.83 to $19.96.
NMS Communications (NMSS) tumbled 31% after the provider of telecom equipment warned that second-quarter results would be lower than expected. The company now sees an adjusted loss of 2 cents to 3 cents a share on revenue of $25 million to $26 million. NMS had previously forecast a profit of 2 cents to 4 cents a share and revenue of $29 million to $31 million. Analysts project earnings of 3 cents a share on revenue of $30 million.
"We are clearly disappointed with the financial results we expect to deliver for the second quarter," the company said. "Revenues from our platform-solutions business are expected to be well below Q1 levels and our expectations for the second quarter." NMS plans to issue second-quarter results on July 27. Shares were down $1.14 to $2.54.
Shares of Tibco Software (TIBX) rose 7% after the software company posted better-than-expected second-quarter results. For the period ended June 4, the company earned $24.5 million, or 11 cents a share, on revenue of $121.2 million. Excluding items, the company earned $16.9 million, or 8 cents a share. Analysts expected earnings of 6 cents a share on revenue of $118 million. During the year-earlier quarter, the company posted adjusted earnings of $8.6 million, or 4 cents a share, on revenue of $101.4 million. Shares were up 48 cents to $7.52.
Other technology movers included Intel (INTC) , down 23 cents to $18.62; Microsoft (MSFT) , up 1 cent to $23.48; Oracle (ORCL) , up 14 cents to $14.64; Sun Microsystems (SUNW) , down 8 cents to $3.92; Apple Computer (AAPL) , down 93 cents to $54.84; Finisar (FNSR) , up 16 cents to $3.19; JDSU (JDSU) , down 7 cents to $2.30; PMC-Sierra (PMCS) , down $1 to $8.04; Cisco Systems (CSCO) , down 14 cents to $19.49; Sirius Satellite Radio (SIRI) , down 5 cents to $4.48; Advanced Micro Devices (AMD) , down 91 cents to $22.92; and Lucent Technologies (LU) , down 2 cents to $2.37. |
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| Thursday, July 06, 2006 |
- Wireless software maker Openwave Systems Inc. (Nasdaq:OPWV) on Thursday gave a fourth-quarter loss forecast and a full-year profit estimate that were well below Wall Street estimates, sending its shares down 34 percent.
The maker of software for accessing the Internet over mobile phones blamed the weak forecasts on disappointing sales in Europe and Japan, and also said its customers were taking longer to sign orders because consolidation has created larger phone carriers with more cumbersome decision-making procedures.
Openwave said it expected a net loss of 13 cents to 14 cents a share on revenue of $90 million to $92 million for the quarter ending June 30. It said it expected to break even before including exceptional items.
Analysts on average were expecting earnings of 22 cents a share before exceptional items, on revenue of about $122 million, according to Reuters Estimates.
"It's a huge disappointment," said Peter Jacobson, an analyst with Kaufman Bros.
Openwave's biggest problem was disappointing sales of its main product line, so-called WAP browser software for mobile phones, said Jefferies & Co. analyst Katherine Egbert.
She estimated that sales of the software -- installed on cell phones as well as server computers -- fell to $70 million during the fourth-quarter from $74 million a year earlier.
"The core business isn't growing," she said.
Brokerage Robert W. Baird & Co. cut its recommendation on Openwave shares to "neutral" from "outperform" on the news. Wachovia cut its rating to "market perform" from "outperform."
Openwave Chief Executive David Peterschmidt said he was reviewing the company's performance to make sure its operating cost structure was in line with revenue potential. He said he did not expect to take any quick "knee-jerk" steps to cut costs.
"We take this shortfall in performance seriously," Peterschmidt said in an analyst conference call. "Our response to the quarter's results will be thoughtful and measured."
Openwave had said on Wednesday that it received subpoenas from U.S. prosecutors seeking documents related to its stock options practices. The company is one of more than 50 under government scrutiny in a widening investigation into the way they accounted for options grants.
Openwave shares fell $3.94 to $7.53 in mid-afternoon trading on Nasdaq. Some 38 million shares changed hands, more than 14 times the three-month daily average. Before Thursday's drop, the stock had already lost more than 30 percent over the past year.
Redwood City, California-based Openwave also gave its outlook for fiscal 2007 in the conference call, forecasting pro forma earnings of 58 cents to 62 cents a share on revenue of $430 million to $460 million.
Analysts on average were expecting 2007 earnings of $1.03 a share before special items on revenue of $562 million, according to estimates. |
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Shares of Openwave Systems (OPWV) were among technology's losers Thursday, tumbling 30% after the software company warned that fourth-quarter results would be well below Wall Street's forecast.
For the period ended June 30, the company sees break-even adjusted earnings, which exclude items. The company expects to post revenue of $90 million to $92 million. Analysts polled by Thomson First Call project earnings of 22 cents a share on revenue of $122.1 million. For fiscal 2006, Openwave expects an adjusted profit of 55 cents a share on revenue of about $410 million. Analysts project earnings of 77 cents a share on revenue of $443 million. "While the results for the quarter are disappointing, overall the company has delivered a solid financial year," the company said. Shares were recently trading down $3.49 to $7.98.
Sirius Satellite Radio (SIRI) shares rose 3% after the company posted second-quarter subscriber numbers that more than doubled from a year earlier and bested the additions posted by rival XM Satellite Radio (XMSR) . Sirius added 600,460 net subscribers during the quarter, 64% above last-year's additions of 366,000. Sirius ended the quarter with 4.68 million subscribers, compared with 1.81 million a year earlier.
XM, meanwhile added 398,000 subscribers during the second quarter, down from the 568,902 subscribers that it added during the first quarter. Overall, XM Satellite now has more than 6.89 million subscribers. XM shares were recently trading down 3 cents to $14.46. Sirius shares were up 14 cents to $4.62.
Shares of Novatel Wireless (NVTL) rose 2% after the telecom-gear company boosted its second-quarter revenue guidance. The company now estimates revenue of more than $44 million, up from an earlier forecast of $40 million to $42 million. Analysts project revenue of $41.3 million. "Our diversification strategy for new and existing product lines is resulting in higher than expected second quarter sales driven by multiple revenue drivers in both EMEA and North America markets," the company said. Novatel plans to issue second-quarter results on July 26. Shares were trading up 21 cents to $10.72.
Ciber (CBR) rose 2% after the information-technology consulting services firm lifted its second-quarter revenue projection and reiterated its earnings estimate. The company estimates revenue of $245 million to $248 million, up from an earlier view of $239 million to $244 million. The company continues to project earnings of 10 cents to 11 cents a share. Analysts project earnings of 11 cents a share, with revenue of $239.4 million. "Revenue increased across all segments, except federal government, which is working hard to expand its backlog," the company said. "We remain confident that our 2006 results will continue to demonstrate the success of our diversified business model." Ciber plans to issue second-quarter results on July 26. Shares were trading up 12 cents to $6.60.
Shares of NetScout Systems (NTCT) plunged 25% after the network-gear outfit warned that first-quarter results would be lower than expected. For the period ended June 30, the company sees earnings of 3 cents to 4 cents a share, with revenue of $23 million to $24 million. Previously, NetScout projected earnings of 5 cents to 6 cents a share and revenue of $25.5 million to $26.5 million. Analysts had forecast earnings of 6 cents a share and a top line of $25.9 million. NetScout said that it was hurt by longer-than-expected sales cycles in some of its business and lower-than-expected results in its European operations. The company expects to release final results on July 26. Shares were trading down $2.19 to $6.45.
Other technology movers included Intel (INTC) , up 4 cents to $18.79; Microsoft (MSFT) , up 13 cents to $23.48; JDSU (JDSU) , down 1 cent to $2.39; Cisco Systems (CSCO) , up 6 cents to $19.66; Applied Materials (AMAT) , up 14 cents to $16.35; Sun Microsystems (SUNW) , up 2 cents to $4.06; Rambus (RMBS) , up 45 cents to $24.75; Apple Computer (AAPL) , down 1 cent to $56.99; and Oracle (ORCL) , down 5 cents to $14.52; and Lucent Technologies (LU) , up 1 cent to $2.39. |
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| Wednesday, July 05, 2006 |
Citigroup Bullish on Charter Communications, Upgrades Stock on Management Team Actions
NEW YORK -- Shares of cable television system operator Charter Communications Inc. rose more than 7 percent in Wednesday morning trading, after Citigroup analyst Jason Bazinet upgraded the stock to "Buy from "Sell," saying Charter is poised for a turnaround.
Shares of the company rose 8 cents, or 7.2 percent, to $1.19 on heavy volume.
In a note to clients Wednesday, Bazinet said he expects the company to reverse three flat years of EBITDA, or earnings before interest, taxes, depreciation and amortization, as it rolls out voice-over-Internet Protocol services, or VoIP. The service allows customers to make telephone calls using a broadband Internet connection instead of a regular phone line.
The analyst said fellow competitors, Cablevision System Corp. and Time Warner Inc., experienced a sharp acceleration in EBITDA growth following their deployment of voice services.
Bazinet also said the company's management team has a "clear, well-defined strategy for turning Charter around." Neil Smit, Charter's chief executive officer, plans to invest capital in areas with high return and use fact-based marketing techniques to target the right customers, Bazinet said.
Bazinet upgraded the stock to "Buy" from "Sell," and raised his price target to $1.75 from $1.
On Monday, Charter completed the sale of several of its assets to Cebridge Acquisition Co. and New Wave Communications for a total of about $896 million. |
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| Monday, July 03, 2006 |
Shares of Millicom International Cellular (MICC) were among technology's losers Monday, plunging 27% after the telecom company said it ended all discussions to be acquired.
In January, shares soared after the company said that it was conducting a strategic review after it had received a "high number" of unsolicited approaches. In March, Millicom said it had received several nonbinding acquisition offers. "Since May 2006, the company has been in prolonged discussions and due diligence with one potential purchaser but has now concluded that this purchaser will not be in a position within an acceptable timeframe to make a binding offer that is suitably attractive, given the current strong performance of the business, or sufficiently certain of closing," Millicom said Monday morning. According to the Wall Street Journal, China Mobile (CHL) was set to announce a $5.3 billion acquisition of Millicom. Millicom said it "remains confident" in its future as an independent company. Shares were trading down $12.28 to $33.15.
Merge Technologies (MRGE) plummeted 40% after the company said it would restate its financial reports for 2002 through 2005 after an investigation turned up improper accounting. The company also announced the resignations of its chief executive, chief financial officer, and its senior vice president of strategic business development. "As previously reported, since January 10, 2006, the company has received a number of anonymous letters primarily alleging improprieties relating to the company's financial reporting, fulfillment of customer contracts and disclosure practices," Merge said in a press release. "More specifically, the letters contained allegations of improper revenue recognition practices."
As for the management changes, CEO William Mortimore will be replaced by Brian Pedlar and Robert White, both of whom will serve as co-presidents and co-CEOs on an interim basis. Steve Oreskovich, meanwhile, will serve as interim principal financial officer, replacing CFO Scott Veech. Michael Dunham, chairman, will now serve as Merge's principal executive officer on an interim basis. Shares were down $4.91 to $7.40.
Shares of Qiao Xing Universal Telephone (XING) vaulted 16% after the telecom-products company laid out financial guidance for the rest of 2006. The company sees 2006 sales of $463 million, representing annual growth of 30%. For 2006 to 2010, the company said that it expects income growth will rise by an average yearly rate of 35%. On Friday, shares tumbled after the company posted lower first-quarter earnings, as results were weighed down by options costs. Shares were recently up $1.58 to $11.33.
Redback Networks (RBAK) slid 4% after the networking-equipment maker said it received a subpoena from the U.S. Attorney for the Northern District of California requesting documents related to the company's stock option practices. Redback also said it received an informal request from the Securities and Exchange Commission related to the options issue. In response, the company said it has launched its own review into its historical option grant practices. Shares were trading down 82 cents to $17.52.
Other technology movers included Lucent Technologies (LU) , up 2 cents to $2.44; Intel (INTC) , up 29 cents to $19.29; Microsoft (MSFT) , up 30 cents to $23.60; Cisco Systems (CSCO) , up 54 cents to $20.07; Sirius Satellite Radio (SIRI) , down 15 cents to $4.60; Oracle (ORCL) , up 21 cents to $14.70; JDSU (JDSU) , down 4 cents to $2.49; Level 3 Communications (LVLT) , down 18 cents to $4.26; Ciena (CIEN) , down 22 cents to $4.59; and Sun Microsystems (SUNW) , unchanged at $4.15. |
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| Sunday, July 02, 2006 |
U.S. financial data firm SunGard Data Systems Inc. has registered its interest in taking over British software group Misys Plc which is in management buyout talks, the Sunday Times said in an unsourced report.
SunGard, taken over last year by a group of private equity funds for $11.4 billion, is understood to have contacted JP Morgan Cazenove that is advising Misys's independent directors, the report said.
SunGard has yet to indicate a potential price and any takeover would be likely to value Misys at well above its current market capitalisation, it said.
Misys, which is being reviewed by some members of its senior management team who are interested in buying it, said it would not comment on market speculation. Misys shares closed at 215 pence on Friday, valuing the firm at around 1.2 billion pounds. |
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