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| Friday, July 21, 2006 |
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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