| Tech Stock News and Analysis |
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| Monday, September 04, 2006 |
Shares of VeriFone Holdings Inc. (PAY) rose more than 20 percent on Friday, a day after the electronic payment technology provider reported third-quarter results above Wall Street estimates and raised its 2006 and 2007 outlook.
VeriFone said it expects to close the acquisition of rival Lipman Electronic Engineering Ltd. by November 1 and remain confident it will receive clearance by the U.S. Department of Justice shortly.
The company said the outlook was also based on its long-term model which sees annual revenue growth of 10 percent to 15 percent and annual adjusted net income per share growth of 20 percent or more.
Raymond James upgraded VeriFone to "outperform" from "market perform" and set a price target of $28, citing strong results, outlook and business trends.
The brokerage said the transaction processing sector has historically enjoyed a 15 percent earning-per-share expansion, 10 percent top-line growth and 20 percent operating margins. It said VeriFone could meet or exceed all these metrics.
Shares of the company rose $4.85 to $28.00 in trading on the New York Stock Exchange.
ESS Technology (ESST) fell 13% after the chipmaker cut its third-quarter revenue forecast. The company now sees revenue of $23 million to $28 million, below its previous view of $31 million to $35 million. Analysts project revenue of $32.3 million.
"The September quarter has been affected by a serious slowing of demand in China for our DVD products which has resulted in lower than expected revenues in the quarter," ESS said. Shares recently were down 17 cents to $1.13.
Shares of Bookham (BKHM) fell 3% after the optical-components maker announced a private placement of about 8.7 million shares. The company sold the stock at $2.70 a share, a discount of 15% from Thursday's closing price of $3.18. Bookham also issued warrants for another 2.17 million shares.
The sale raised about $23.5 million in gross proceeds, which Bookham plans to use for working capital purposes. Shares were trading down 8 cents to $3.10.
VimpelCom (VIP) rose 6% after the Russian telecom company posted better-than-expected second-quarter results. The company earned $194.9 million, or 96 cents per American depository share, on revenue of $1.12 billion. Analysts expected earnings of 93 cents per ADS on revenue of $1.06 billion. During the year-earlier period, the company earned $158.8 million, or 78 cents a share, on revenue of $769.8 million.
"For the first time our quarterly revenue exceeded the $1 billion mark," VimpelCom said. "This success underlines our ability to deliver results against strategic priorities." Shares were trading at $57.47, up $3.15.
Shares of OmniVision Technologies (OVTI) slid 7% after the maker of semiconductor image sensors posted weaker-than-expected first-quarter results and gave a guidance below forecasts. For the period ended July 31, the company reported first-quarter earnings of $15.9 million, or 28 cents a share, on revenue of $136.9 million. Excluding stock-based compensation costs, OmniVision earned $22.1 million, or 39 cents a share. Analysts expected earnings of 40 cents a share and revenue of $139.8 million. During the year-earlier period, the company earned $14.4 million, or 25 cents a share, on revenue of $96 million.
For the second quarter, OmniVision predicts adjusted earnings of 26 cents to 34 cents a share on revenue of $135 million to $145 million. Analysts project earnings of 42 cents a share and revenue of $150.7 million. Shares were off $1.16 to $15.44.
Other technology movers included JDSU (JDSU) , unchanged at $2.27; Intel (INTC) , up 17 cents to $19.74; Cisco Systems (CSCO) , down 1 cent to $21.98; Microsoft (MSFT) , up 15 cents to $25.85; Ciena (CIEN) , down 14 cents to $3.81; Sirius Satellite Radio (SIRI) , up 2 cents to $4.10; Lucent Technologies (LU) , down 2 cents to $2.31; Oracle (ORCL) , down 1 cent to $15.65; and Sun Microsystems (SUNW) , up 5 cents to $5.04. |
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