| Tech Stock News and Analysis |
|
|
| 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. |
|
|
|
|
| Previous Post |
|
| Archives |
|
| Links |
|
| Powered by |
 |
|
