Tech Stock News And Analysis

2007-10-10T14:47:00.000-07:00

The NASDAQ 100 continues to break out, hitting a high of $53.57 on Wednesday, the highest level since February 2001.

2007-09-26T20:38:00.000-07:00

The NASDAQ 100 hit another high on Wednesday, closing at $51.32

2007-09-23T12:29:00.001-07:00

The NASDAQ 100 hit a new multi year high on Friday, closing at $50.36

2007-09-20T12:00:00.000-07:00

After spiking during Tuesday's rally, the NASDAQ 100 is retreating to the $50 level, near the highs set in July.

2007-08-29T10:38:00.000-07:00

The NASDAQ 100 is currently trading in a range below the 50dma and above the 200dma.

2007-08-26T12:32:00.000-07:00

The NASDAQ 100 closed the week at $48.30, just above the 50 day moving average of $48.14

2007-08-13T18:08:00.001-07:00

NASDAQ 100 Technical Levels

Support: 46.78

Resistance: 47.92

2007-06-26T17:55:00.001-07:00

The NASDAQ Composite Index briefly touched the 50 day moving average of 2566 on Tuesday, eventually closing at 2574.

Note the period in early June in which the NASDAQ tested the 50 day moving average and subsequently bounced 75 points.

2007-06-24T15:12:00.001-07:00

The Philadelphia Semiconductor Index ($SOX) is currently testing resistance at the 510 level.

The SOX hit a new 52 week high of $512.09 intra day on Thursday, but retreated on Friday to close down 1.5% at 504.73

2007-06-03T13:40:00.001-07:00

The NASDAQ Composite index continues to breakout, closing above 2600 for the first time since 2001.

2007-05-13T12:25:00.000-07:00

The Philadelphia Semiconductor Index ($SOX) recently broke through a key technical level when it passed 500, eventually hitting a 52 week high of $510.26 on May 9th.

Note the 500 level was previously a support level during Q2 of 2006.

2007-05-03T10:51:00.000-07:00

The NASDAQ Composite Index continues to break out and hit new multi year highs. The rally from the 2000 level in July 2006 to the current levels above 2500 is particularly impressive.

The NASDAQ is currently more than 200 points above it's 200 day moving average of 2354.

2007-03-23T19:23:00.000-07:00

After successfully testing support at 2350 the NASDAQ Composite Index closed the week just above the 50 day moving average. If the NASDAQ can stay above this level in the coming week it should be viewed as a bullish sign and may indicate that the market is poised to take another run toward 2500.

2007-03-21T17:29:00.000-07:00

Orcacle (NASDAQ ORCL) reported strong third-quarter earnings. The software company reported earnings jumped to $1.03 billion, or 20 cents per share, from $765 million, or 14 cents, in the same period a year earlier.

ORCL beat the Street estimate by two cents per share.

2007-03-05T05:08:00.000-08:00

After topping out last week just above the 2500 level, the NASDAQ has experienced increased selling pressure. The next level of support is at 2350 but it seems more likely that the index will test the 200 day moving average just below 2300.

2007-02-22T07:47:00.000-08:00

The NASDAQ Composite Index is in rally mode. The NASDAQ is up over 75 points in the past 7 trading sessions. This is a very bullish signal for the market as the index continues to hit multi year highs.

2007-02-13T14:40:00.000-08:00

The NASDAQ Composite Index closed up 9.5 points on Tuesday and appears to now have strong technical support at the 50 day moving average.

2007-02-11T10:18:00.000-08:00

The NASDAQ Composite Index has been running into overhead resistance at the 2495 mark. After a 28 point decline on Friday the index may be poised to test support at the 50 Day Moving Average (2450). If this support can hold it would be a bullish signal as the NASDAQ Composite attempts another run toward the 2500 level.

2007-02-09T13:36:00.001-08:00

Silicon Image Inc. shares dropped in Friday trading after the chip maker posted a twofold increase in fourth-quarter income but forecast first-quarter sales below Wall Street estimates.

The company, which makes high-definition multimedia interface (HDMI) transmitters used in digital media devices, said Thursday it expects $68 million to $72 million in first-quarter sales, below expectations for $73.2 million in sales from analysts polled by Thomson Financial.

Jefferies & Co. analyst Adam Benjamin cut his rating on the stock to "Underperform" from "Hold" and recommended investors sell shares due to the industry's slow adoption of next-generation HDMI used in HDTVs, personal computers and DVD players.

The analyst also cited Silicon Image's aggressive revenue guidance, deteriorating prices and margins, eroding computer business, and a challenging TV strategy.

Needham & Co. analyst N. Quinn Bolton cut his rating on the stock to "Hold" from "Buy" based on uncertainty surrounding the company's new product strategy.

"We encourage investors move to the sidelines until valuation becomes more compelling or the DTV market shows signs of adopting Silicon Image's product strategy," Bolton wrote in a note to investors.

Shares of Silicon Image, which have traded between $8.20 and $14.68 over the last 52 weeks, fell $2.85, or 23.4 percent, to $9.32 in afternoon trading on the Nasdaq.

2007-02-07T14:45:00.000-08:00

The NASDAQ Composite Index appears poised to break out to new multi-year highs. This 6 month charts shows strong support at the 50 day moving average. The NASDAQ has rallied over 200 points since the 50 day moving average crossed the 200 day moving average back in October. If the NASDAQ Index can break above 2510 it could move much higher in this market that is being driven by positive earnings news throughout the tech and biotech sectors.

2007-02-07T09:37:00.001-08:00

Shares of chipmaker Infineon Technologies AG surged more than 10 percent Wednesday after the company said it was selected by Nokia to supply chips for some of its mobile phones, a boost for the company's production and prospects.

Munich-based Infineon said its "integrated single-chip E GOLD voice" platform will be used by the world's largest mobile phone maker in a selection of its upcoming slate of low-cost phones aimed at entry-level market buyers.

Shares of Infineon rose 10.7 percent to euro11.96 (US$15.53) on news of the deal, the details of which were not released.

The decision by Nokia lifted pressure from Infineon, which had been hampered after its biggest customer, BenQ Mobile, went into bankruptcy last year.

The Nokia deal means the company is back on track, UBS analyst Jonathan Dutton wrote in a research note. He said it is likely Infineon could build on the momentum and strike similar deals with other mobile phone makers in the coming months.

"Nokia aims to further improve the power performance in our entry-level phones and reduce their size," said Soren Petersen, senior vice president of Nokia's Entry Business unit. "Adding Infineon's single-chip solution to Nokia's portfolio of chipset suppliers helps us ensure access to optimized solutions for this important market."

Infineon is one of Europe's biggest producers of the chips that are used to make computers run, expand memory and help other products from phones to automobiles work.

2007-02-05T16:24:00.001-08:00

Shares of Novatel Wireless Inc. hit a 52-week high Monday after it said fourth-quarter earnings and sales could top its previous forecast.

Novatel said Monday it expects net income to be within or above its previous guidance range of 2 cents to 4 cents per share, thanks to surging demand for its wireles communications cards. The company also raised its adjusted earnings range to between 13 cents and 14 cents per share and boosted its revenue projection to $76 million.

The previous forecasts called for adjusted earnings of 7 cents per share on revenue between $61 million and $63 million.

Novatel shares jumped 97 cents, or 8.6 percent, to $12.22 on the Nasdaq during morning trading. The stock has ranged from 48.06 to $12.35 in the past year.

"Fourth quarter revenue growth was driven by increased demand in all three prongs of Novatel Wireless' growth strategy _ PC cards, embedded solutions and Ovation fixed-mobile convergence products _ with the Company's ExpressCard product introduction being the most successful in Company history," the company said in a statement.

2007-02-01T08:25:00.001-08:00

Google Inc. shares fell in Thursday premarket trading after the online search engine leader's sharply higher fourth-quarter profit failed to impress investors.

On Wednesday, Mountain View, Calif.-based Google reported adjusted profit of $3.18 per share, which topped analysts' expectations of $2.92 per share.

Many analysts were upbeat on the company's prospects and several analysts, like Prudential Equity Group's Mark J. Rowen, raised their price targets. Rowen became the latest analyst to set a price target of $600 or above.

"We believe the fourth-quarter results give us further evidence that growth is decelerating at a slower pace than what the market has priced into the stock, and that management is doing an excellent job of keeping the rate of expense growth below the rate of revenue growth," Rowen wrote in a client note.

Rowen raised his price target to $600 from $575 and kept an "Overweight" rating on the shares.

Merrill Lynch analyst Justin Post also raised his price target by $30 to $560, expecting the company to gain market share in 2007.

"We believe Google will continue to take share in an attractive market, and the company's technology strengths will lead to new opportunities in traditional media, payment processing and on-demand software," Post wrote in a client note, while keeping a "Buy" rating on the stock.

Lehman Brothers analyst Doug Anmuth kept an "Overweight" rating on the shares and expects the company to continue increasing search market share, while expanding into new products and other forms of media.

Anmuth warned, however, investors may focus more on potential impacts of online payment service Checkout and other factors, despite fourth-quarter results. Although quarterly top-line growth was 20 percent, Anmuth said further gains were curbed by Checkout, a lower overall average cost-per-click during the quarter, and adverse seasonality of travel and finance verticals in the U.K. during the quarter.

"We do believe that as Google grows, its business is becoming increasingly complex and there are more moving pieces impacting the model," Anmuth wrote in a client note.

Google gave up $6.80 at $494.70 in premarket activity.

2007-01-30T14:06:00.001-08:00

Google Earnings Could Spark Tech Rally

Google Inc. reports earnings for the fourth quarter on Wednesday. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: Google, the most-used U.S. search engine, continued to gain share of queries during the quarter. More searches translate into greater revenue from text ads that appear on Google's own and partner Web sites.

The Mountain View, Calif.-based company extended its reach by starting to sell advertising space in nearly 100 magazines, 50 newspapers and 700 radio stations.

In an move to defend its massive book-scanning plan from copyright lawsuits, Google subpoenaed information about book scanning and search activities by competitors Microsoft Corp., Amazon.com Inc. and Yahoo Inc., among others. Yahoo and Amazon rejected the request.

Google also added free Web-based word processing and spreadsheet software to site, a move that could threaten Microsoft Corp.'s dominant Office desktop programs.

The company promoted its online payment system, Checkout, with discounts and promotions during the holiday shopping season, a move that threatens eBay Inc.'s competing system, PayPal.

But the biggest deal by far was the company's acquisition of YouTube, a viral video-sharing site, for $1.76 billion.

Without providing details, Google disclosed that its own video service was sued for copyright infringement during the quarter. Google and YouTube both made a flurry of content distribution deals with record labels just before the acquisition, and it remains to be seen whether the YouTube buyout will spark more lawsuits.

Google said it set aside more than $200 million in stock from the deal, which it could possibly use toward copyright-related legal bills.

BY THE NUMBERS: Analysts polled by Thomson Financial expect Google to earn $2.90 per share on $2.19 billion in revenue.

For the fiscal year, analysts are looking for a profit of $10.32 on sales of $7.25 billion.

ANALYST TAKE: In a Jan. 16 note to investors, Lehman Brothers analyst Douglas Anmuth wrote that Google's gain in market share may help push results above Wall Street's expectations.

The company also tweaked its search-ad recipe to show more relevant ads on shopping-related searches, which may have boosted results during the holiday shopping rush.

"We continue to believe that the combination of personalization and behavioral targeting will serve as a major driver for online advertising over time," Anmuth wrote, lauding Google's improvements on these fronts.

The analyst also wrote that he expects Google's international business, which grew faster than domestic business in the third quarter, remained strong. A weaker U.S. dollar during the three-month period will also fuel revenue growth, he wrote.

Anmuth reiterated his "Overweight" rating and $560 price target on the stock.

Citigroup analyst Mark Mahaney voiced concerns about how big a bite Checkout promotions and the YouTube integration might take out of earnings, but emphasized that the core business would not be responsible for any shortfalls.

Mahaney also noted market share gains and foreign exchange trends. To support his "Buy" rating and $600 price target, the analyst also cited Google's increasingly popular non-search products, such as the Gmail e-mail service and Picasa photo organization software, distribution deals with Dell Inc. and others as well as the addition of behavioral targeting to the search-ad algorithm.

STOCK PERFORMANCE: Shares of Google rose 15 percent during the quarter, ending December at $460.48 on the Nasdaq. In the past 52 weeks, the stock traded as high as $513 and as low as $331.55.

2007-01-24T14:21:00.000-08:00

Sun Microsystems Inc. is back in the black, but investors are questioning whether the notoriously boom-and-bust company can remain profitable for the long term.

For the three months ended Dec. 31, the server and software maker earned $126 million, or 3 cents per share, up from a net loss of $223 million, or 7 cents per share, in the year-ago period.

Fiscal second-quarter revenue totaled $3.57 billion, up 7 percent from $3.34 billion a year earlier.

Excluding special expenses, such as $58 million in stock-based compensation charges and $26 million in restructuring costs, Sun earned $148 million, or 4 cents per share.

2007-01-23T15:31:00.000-08:00

Yahoo Inc. said on Tuesday quarterly profit dropped 61 percent, weighed down by options expenses, but investors rallied around its announcement of an early debut for its Internet advertising system.

Shares in the Internet media company rose more than 5 percent to $28.40 in extended trading from its Nasdaq close at $26.96, after its management said it was rolling out the new system for selling Web search advertising, dubbed Panama.

The comments helped overcome investor concerns over the company's conservative first-quarter and full-year forecasts.

"We have successfully transitioned the large majority of our revenue to the new search system known as Project Panama," Chief Executive Terry Semel said on a conference call with analysts. "We believe this will deliver more relevant text ads to users, which in turn should create greater volume of high-quality leads."

Yahoo will introduce its new system for ranking Web ads in the United States as of February 5, about a month earlier than expected by Wall Street analysts, and it was on track to bring it to international clients in the second quarter.

2007-01-22T17:04:00.000-08:00

Texas Instruments Inc., the world's largest maker of chips for mobile phones, said fourth-quarter earnings rose a modest 2 percent from a year ago due to stronger demand for the company's semiconductor and calculator products.

Texas Instruments said it earned $668 million, or 45 cents per share, in the fourth quarter, compared with $655 million, or 40 cents per share, in the same period last year.

Revenue was $3.46 billion, up 4 percent from $3.32 billion in the same period a year earlier.

Monday's results were buoyed by a 5-cent-per-share tax benefit from a federal research and development bill passed into law late last year. Analysts surveyed by Thomson Financial expected earnings of 38 cents per share on $3.43 billion in revenue.

Despite the gains, TI said it was making several changes to increase efficiency and profitability in the coming years.

TI already uses a mixture of its own factories and other suppliers to produce semiconductors, and company executives said that outsourcing model would be extended to include the development of certain digital chips.

"That level of redundancy no longer makes sense," said Ron Slaymaker, TI's vice president for investor relations. "This is an area where we realize we can gain further efficiencies."

The company also said it will close a small digital chip fabrication plant in Dallas and eliminate 500 jobs over the coming year as part of a cost-cutting measure designed to save some $200 million annually.

Slaymaker said growth in the fourth quarter slowed compared with the third quarter due to a combination of seasonally weaker sales, customers who were still reducing chip inventories and TI's wireless customers, who were selling more cheap low-end handsets than higher-end, more profitable devices.

TI said it believes earnings in the first quarter will range from 28 cents to 34 cents per share on revenue of $3.01 billion to $3.28 billion, just below Thomson Financial analysts' forecast of 35 cents a share. TI will release a more detailed midquarter update in March.

"Challenges continue in the first quarter as we operate in an environment where customers want lower levels of inventory and where growth in the wireless market is skewed to low-priced, basic-featured cell phones instead of higher-priced, full-featured phones," Rich Templeton, TI's president and chief executive officer, said in a statement.

Analyst Cody Acree of Stifel Nicolaus & Co. said the fourth quarter was solid but he was concerned about the company's weak guidance moving into the first quarter. He agreed, however, that TI's decision on chip outsourcing was a more streamlined approach.

He said TI, like other chipmakers, faces the tricky proposition of trying to predict now what demand will be for its chips in a few months.

"Right now there's a lot of second guessing," Acree said.

For all of 2006, the Dallas company earned $4.34 billion, or $2.78 per share, on revenue of $14.25 billion, compared with earnings of $2.32 billion, or $1.39 per share, on sales of $13.39 billion in 2005.

TI shares have traded between $26.77 and $36.40 over the last year. Before the results were released, the shares rose 20 cents to close at $28.59 on the New York Stock Exchange. They gained 62 cents, or 2.2 percent, to $29.22 in after-hours trading.

2007-01-16T08:40:00.000-08:00

Analysts at UBS downgrade Advanced Micro Devices to "reduce," while reducing their estimates for the company. The 12-month target price has been reduced from $23 to $16.

In a research note published yesterday, the analysts mention that the company is likely to have witnessed significant ASP pressure in 4Q06, primarily in the dual-core products segment. The analysts express their concern regarding Advanced Micro Devices’ ability to attain the gross margin and cash flow guidance for 2007. The EPS estimates for 4Q06 and 2007 have been reduced to $0.06 and $0.88, respectively.

2007-01-11T08:26:00.000-08:00

The NASDAQ broke out to multi year highs on Thursday. This is a very bullish sign for the broader market heading into earnings season.

2007-01-11T03:10:00.000-08:00

After recently testing support at the 50 Day Moving Average the Nasdaq Composite Index is attempting another run towards the 52 week high. A break above 2,470 would be a very bullish signal and would put the market once again into multi-year highs.

2007-01-03T10:21:00.000-08:00

Tibco shares up 4.5% to $9.90 in trading on the NASDAQ.

Tibco Software Inc., which makes business integration software, said last week its fiscal fourth-quarter profit rose 19 percent, but full-year earnings barely budged.

For the three months ended Nov. 30, earnings increased to $31.5 million, or 14 cents per share, from $26.6 million, or 12 cents per share, during the same period last year.

Revenue rose 20 percent to $161 million from $134.4 million in the year-ago quarter. Both license revenue and service revenue grew during the quarter.

Analysts polled by Thomson Financial forecast a profit of 12 cents per share on $156.5 million in sales.

For the full fiscal year, Tibco's earnings inched up less than half a percent to $72.9 million, or 33 cents per share, from $72.6 million, or 32 cents per share in 2005. Results were weighed down by a hefty income tax provision.

Revenue rose 16 percent to $517.3 million from $445.9 million last year.

The company also said it approved a program to repurchase up to $100 million in outstanding shares over the next 18 months.

2006-12-28T13:02:00.000-08:00

The NASDAQ Composite Index has recently bounced off of the 50 day moving average. This level is providing strong support and indicates that the market wants to move higher in the near term.

2006-12-24T13:19:00.000-08:00

The NASDAQ Composite Index pulled back this past week and is currently testing support at the 50 Day Moving Average. Next week could be a turning point as the NASDAQ looks to either break down or move higher into 2007.

2006-12-22T08:14:00.000-08:00

Shares of Red Hat Inc.(NASDAQ RHAT) surged in premarket trading Friday after the maker of computer operating systems reported third-quarter earnings showing the company survived the first phase of attack from Oracle Corp.

Red Hat posted third-quarter adjusted profit, excluding charges, of 14 cents per share, beating forecasts for profit of 12 cents per share. The Raleigh, N.C.-based maker of Linux operating systems said revenue rose 45 percent to $105.8 million.

Some analysts said the quarter was surprisingly strong but it's too early to declare the Oracle threat over. Red Hat's shares lost a quarter of their value in October after business software maker Oracle in October said it would sell maintenance services for Red Hat's Linux operating system and charge less than Red Hat.

Jefferies & Co. analyst Katherine Egbert in a client note called the report "cheerful," but said "it's too early to gauge the full effect of competition from Oracle" as well as Microsoft Corp.'s support of Novell Inc.'s version of Linux.

Still, the "breakout quarter should help allay investor concerns," Merrill Lynch analyst Kash Rangan wrote in a research report. The competitive threats from Oracle and Microsoft may be exaggerated, Rangan said, as Red Hat lost only a few customers in the first five weeks of competition.

"Oracle's Linux push is validating the market and expanding the pie, which is driving more business for Red Hat," Rangan said.

Shares of Red Hat rose $2.71, or 15 percent, to $20.67 in trading on the NASDAQ.

2006-12-21T07:20:00.000-08:00

Shares of PMC-Sierra Inc (NASDAQ PMCS)., maker of chips used in telecom, networking, and storage equipment, fell sharply in premarket trading after the company cut fourth-quarter revenue estimates.

The company said after market close on Wednesday it expects $100 million to $105 million in revenue, down from a previous projection for $105 million to $112 million, because of slower demand. Wall Street is looks for earnings of 5 cents per share on $108.9 million in revenue.

Stanford Group Co. analyst Tim Kellis, who has a "Sell" rating on the stock, thinks the company is no longer the leader in the communications space, and lowered his fourth-quarter revenue estimate to $99.1 million from $106.4 million. He also cut his earnings estimate to 3 cents per share from 5 cents per share.

Kellis' target price is $5.

Shares of PMC-Sierra lost 19 cents, or 2.8 percent, at $6.70 in early trading on the NASDAQ.

2006-12-20T08:33:00.000-08:00

Smart Modular Technologies Inc., a maker of memory chips and modules, said Tuesday its fiscal first-quarter profit rose 56 percent, sending shares up in after-hours trading.

For the three months ended Nov. 30, earnings climbed to $14.6 million, or 23 cents per share, from $9.3 million, or 17 cents per share during the same period last year. Results beat the company's November guidance of 21 cents to 22 cents per share.

Revenue increased 50 percent to $237.2 million from $158.3 million in the year-ago quarter.

Analysts polled by Thomson Financial forecast a profit of 21 cents per share on $210.9 million in sales.

For the second quarter, the company said it expects to earn 20 to 21 cents per share on $230 million to $240 million in sales.

For the fiscal year, the company said it expects to post a profit of 88 cents to 90 cents.

Shares of Smart Modular Technologies gained 5.4 percent to $13.18 in after-hours trading on the INET electronic exchange, after adding 28 cents, or 2.3 percent, to close at $12.51 on the Nasdaq.

2006-12-19T06:30:00.000-08:00

Embarcadero Technologies Inc., a maker of data management software, said Monday an agreement to be acquired by an of affiliate of Thoma Cressey Equity Partners has been ended by mutual agreement.

Embarcadero had agreed to be acquired by EMB Holding Corp. in September in a $234 million deal that valued the company at $8.38 per share.

The company said that both parties have agreed to release all claims they may have against each other and that neither party will have to pay a termination fee.

The companies did not disclose the recent for ending the deal, although Embarcadero's stock had lost about 16 percent of its value after the company said last month it had found evidence that stock option grants made in 2000 and 2001 were backdated.

Monday, the company said it will need to restate its historical results, and financial statements from Jan 2000 through the present should not be replied upon.

Embarcadero added that the issues at the center of the financial restatements represent material weaknesses in the effectiveness of internal control over financial reporting, and it expects to receive an adverse report from its public accountant.

Embarcadero is one of at least 194 companies that have launched internal probes or are under investigation by federal regulators for possibly backdating stock option grants.

Shares of Embarcadero plunged $1.17, or 16.8 percent, to $5.80 trading on the Nasdaq.

2006-12-18T12:28:00.000-08:00

SanDisk Corp., which makes Flash memory cards for digital cameras, on Monday said it plans to repurchase $300 million in common stock over the next two years.

The company said the buyback would help offset dilution caused by stock incentive awards to employees. By reducing the number of shares outstanding, a company can boost its earnings per share.

2006-12-17T08:39:00.000-08:00

Dell Inc. (NASDAQ DELL) said on Friday it received a letter from Nasdaq saying the computer maker was not in compliance with listing requirements because it was late in filing its fiscal third-quarter report.

The world's No. 2 PC maker previously said it would delay filing the report due to an investigation by the U.S. Securities and Exchange Commission into the company's accounting and financial reporting for possible misstatements.

In addition to the SEC, the U.S. Attorney for the Southern District of New York and the company's audit committee have raised questions about Dell's financial reporting.

Last month, Dell delayed publishing third-quarter results due to the accounting probes. When it did report -- nearly a week late -- it said results were preliminary and it did not expect to file its quarterly report on time with the SEC.

Round Rock, Texas-based Dell also has not yet filed its second-quarter earnings report with the SEC.

Earlier this year, Dell recalled batteries made by Sony Corp. in what was the biggest-ever consumer electronics recall. It has also had complaints of poor after-sales service and recently lost its status as top PC maker to longtime rival Hewlett-Packard. (NYSE HP)

Dell shares fell 34 cents, or 1.3 percent, to close at $26.53 on Nasdaq.

2006-12-15T09:20:00.000-08:00

Adobe Systems Inc. (NASDAQ ADBE) reported on Thursday that quarterly profit grew 16 percent, meeting forecasts on higher sales of design software, and it reassured investors that new products are on schedule, sending its shares up 6 percent.

Adobe said it was on track to start shipping new versions of its Creative Suite line of 14 design programs at the end of the second quarter. It also announced that a preliminary version of the upgrade of one of its top sellers, Photoshop photo editor, will be available for download on Friday.

Adobe also issued a first-quarter earnings forecast that was generally in line with Wall Street expectations.

Investors had worried that the company's fourth-quarter results might miss forecasts or that its outlook for the current quarter would disappoint as buyers waited for the updated programs due out next year, analysts said.

The programs that are being upgraded include Acrobat document-sharing software, the Illustrator drawing program and Dreamweaver Web site developer.

ADBE shares are up 5.5% to $43.10 in mid day trading on the NASDAQ.

2006-12-14T10:32:00.001-08:00

Chordiant Software Inc (NASDAQ CHRD)., a maker of software that helps businesses manage their customer relations, said Wednesday its fourth-quarter loss, on a preliminary basis, widened by 53 percent from last year.

Choridant is one of at least 193 companies that have launched internal reviews, or are being investigated by federal regulators for possibly backdating stock option grants. The company said it has concluded its review, and expects to record an additional $8 million in stock-based compensation expenses. Choridant is currently working with auditors to restate financial results for several years, going back to 2001, and reviewing the factors that may have led to the options that incorrectly accounted for.

For the fourth quarter ended Sept. 30, the company expects to post a loss of $8.4 million, widening from a loss of $5.5 million, or 7 cents per share, last year. Excluding stock-based compensation and amortization expenses, the company lost $7.1 million.

Revenue for the quarter is expected to total $21.7 million, up 2 percent from $21.3 million.

Analysts polled by Thomson Financial expected the company to post a loss, on average, of a penny per share on $26.7 million in revenue.

For the full year, the company expects to post a loss of $16 million, narrowed from a loss of $19.5 million, or 26 cents per share, last year. Excluding certain expenses, the company lost $9.2 million.

Revenue for the year is expected to hit $97.5 million, up 16 percent from $83.7 million last year.

Looking forward, the company projected full year income growth, excluding certain expenses, of between 6 percent to 10 percent, on $115 million to $120 million in revenue in fiscal 2007.

Analysts are currently looking for profit of 15 cents per share on $115.8 million in revenue.

Shares of Chordiant were trading at $2.81, down 44 cents, or 13.5 percent, from Wednesday's closing price of $3.25 on the Nasdaq.

2006-12-14T10:32:00.000-08:00

2006-12-13T12:21:00.000-08:00

Shares of integrated circuit maker Atmel Corp. soared in Wednesday trading after the company announced a reorganization plan that is expected to result in tens of millions in annual savings by 2008.

As part of the plan, the company said Tuesday it plans to sell two European plants and cut 10 percent of its non-manufacturing work force.

The plan is expected to result in annual savings of $70 million to $80 million in 2007, and between $80 million and $95 million by 2008.

Wedbush Morgan Securities analyst Craig Berger said the move could add 5 cents to 7 cents per share in annual earnings per share savings, and he suggested the stock is undervalued.

"We maintain a 'Buy' rating on Atmel because the stock is a restructuring play with further realignment opportunities to pursue in 2007 and 2008; and because Atmel is transitioning into a microcontroller firm with higher margins," Berger wrote in a note to investors. He has an $8 target price on the shares.

Shares of Atmel rose 61 cents, or 11.6 percent, at $5.89 in midday trading on the Nasdaq.

2006-12-12T07:19:00.000-08:00

Endwave Corp. tumbled $1.79, or 14 percent, to $11 after the maker of wireless communication components warned its 2006 revenue will fall below its prior guidance after the bell Monday.

The company said it now expects fourth-quarter revenue between $10 million and $12 million, which would imply sales growth of about 20 percent to 25 percent for 2006. This is below the 35 percent annual growth rate the company guided for previously.

Endwave said the decline would be temporary.

Nokia Corp., which is one of Endwave's customers, recently said it plans to reduce inventory more than previously expected, in a move related to a joint venture with Siemens AG.

Shares of Endwave closed at $12.79 Monday on the Nasdaq.

2006-12-11T14:47:00.000-08:00

The NASDAQ Composite Index seems poised to test the multi year highs set at the end of November. This one year chart shows the index making a nice bounce off of the 2350 level which was previously a spot of overhead resistance. With continued positive economic data, as well as M&A developments, the index could make a run toward 2500 before the end of 2007.

2006-12-11T08:26:00.000-08:00

Shares of chip test equipment maker Credence Systems Corp. soared in afternoon trading on Friday after the company posted a significantly smaller fourth-quarter loss and named a new CEO.

On Thursday the Milpitas, Calif.-based company posted a fourth-quarter loss of $1.9 million, or 2 cents per share, narrowed from $22.5 million, or 23 cents per share, last year.

The company also said Chief Executive officer Dave Ranhoff stepped down and would be replaced by Lavi Lev, a semiconductor industry veteran who previously held positions at National Semiconductor Corp., Intel Corp. and Sun Microsystems Inc.

Needham & Co. analyst Robert Maire lifted his rating on the stock to "Buy" from "Hold" with a $7 price target, but he hardly gave the stock a gushing endorsement.

"While things are far from being good, the downward spiral has reversed and we are at a level of business that is in the black," Maire wrote in a note to investors. "Our view is that the near-term business opportunities are enough to sustain the company until we see an uptick in the overall tone of the market."

Goldman Sachs analyst James Covello was made equally tepid comments.

"Despite solid results and guidance from Credence, we do not recommend the stock as it is down 43 percent year-to-date but it is up 116 percent off its August lows and has rallied 20 percent month to date...," Covello wrote in a note.

He added that the company may be vulnerable to inventory build in the supply chain, which could result in weak semiconductor fundamentals. He also believes there may be a 50 percent downside to his $2.30 price target.

Shares of Credence, which have traded between $1.80 and $9.62 over the last year, were up $1.03, or 26 percent, at $4.98 in afternoon trading on the Nasdaq.

2006-12-08T07:58:00.000-08:00

Chip maker National Semiconductor Corp. said Thursday its second-quarter profit fell 20 percent, dragged by sluggish sales to distributors and lower foundry revenue.

Income for the quarter was $91.4 million, or 27 cents per share, down from $114.7 million, or 32 cents per share, last year.

Quarterly revenue fell 8 percent to $501.6 million from $544 million last year.

Analysts polled by Thomson Financial expected the company to post earnings, on average, of 27 cents per share on $501.5 million in revenue.

"While customer end demand did not demonstrate the seasonal uptick we usually see this time of year, the revenue decline this quarter was driven by inventory reductions at our distributors and some of our customers," said Brian L. Halla, chairman and chief executive officer.

Looking forward, the company projected third-quarter revenue would drop 8 percent to 11 percent sequentially from the second quarter, implying revenue of $446.4 million to $461.5 million. Wall Street is currently looking for $495.1 million in revenue.

The company also expects third-quarter margins to decline slightly in the third quarter.

Shares of the company fell 88 cents, or 3.6 percent, to $23.92 on the New York Stock Exchange.

2006-12-07T13:46:00.000-08:00

Convera Corp., a maker of Internet search software, has named Matthew G. Jones its chief financial officer, treasurer and secretary, according to a Thursday filing with the Securities and Exchange Commission. Jones had been serving as acting CFO, treasurer and secretary since July following the resignation of John R. Polchin, who had held the positions since May 2004.

Shares of Convera added 33 cents, or 7.4 percent, to $4.79 in afternoon trading on the Nasdaq.

2006-12-07T07:59:00.000-08:00

Maxwell Technologies Inc., a maker of capacitors used to extend battery life in electronic devices, said Wednesday that a European wind energy company placed an order for 3 million ultracapacitors.

Financial details were not disclosed. However, the company said the order, which will be filled over two years, is for double the quantity of its previous largest "D cell" order.

The ultracapacitors are used for backup energy storage and power delivery in wind turbines.

Shares of Maxwell jumped 56 cents, or 3.8 percent, to $15.16 in after-hours trading, after gaining 31 cents, or 2.2 percent, to close at $14.60 on the Nasdaq.

2006-12-06T15:23:00.000-08:00

Shares of open source software maker Novell Inc. sank to a new 52-week low on Wednesday after the company posted lower-than-expected fourth-quarter sales and issued disappointing 2007 guidance.

The Waltham, Mass.-based company said Tuesday its fourth-quarter sales fell 15 percent to $244.9 million from $287.6 million a year ago, partly due to sluggish sales of older products.

In a conference call that followed the release of fourth-quarter results, the company said in 2007 it planned to increase investment in several areas including research and development. The company also projected 2007 sales would be roughly flat with 2006.

"Given Novell's decision to invest over the near term combined with an uninspiring near-term revenue outlook is likely to pressure shares over the near term," said JMP Securities analyst Denny C. Fish Jr.

Fish Jr. kept his rating on the stock at "Market Perform".

Shares of Novell, which have traded between $5.73 and $9.83 over the last year, were down 34 cents, or 5.4 percent, at $5.99 in afternoon trading on the Nasdaq. Earlier in the session shares fell to a new year low of $5.70.

2006-12-05T09:52:00.000-08:00

The NASDAQ 100 Index (QQQQ) hit an intra-day 52 week high on Tuesday at $44.97. This one year chart shows the tremendous run in the NASDAQ 100 over the past year. In a market driven my positive earnings news and M&A activity the Index may be poised to go much higher in the coming months.

2006-12-05T09:20:00.000-08:00

High-definition television set maker Syntax-Brillian Corp. said Monday it expects second-quarter revenue to come in ahead of a previous forecast, thanks to strong holiday sales over the Thanksgiving weekend.

The company now expects quarterly sales to come in at, or above, its previous guidance for $178 million to $190 million in revenue.

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Analysts polled by Thomson Financial expect the company to post $185.7 million in second-quarter revenue.

Shares of Syntax-Brillian were trading at $8.95 in the aftermarket session, up 39 cents, or 4.6 percent, from Monday's closing price of $8.56 on the Nasdaq.

2006-12-04T11:37:00.000-08:00

LSI Logic Corp. shares plummeted in Monday morning trading after the company agreed to acquire competitor Agere Systems Inc. in a $4 billion stock swap, in a move to take market share from Marvell Technology Group.

LSI Logic said it will issue about 379 million shares to purchase Agere, which makes integrated circuits used in data storage and wireless network equipment.

Caris & Co. analyst Shebly Seyrafi argued the deal could be a negative for Marvell Technology Group Ltd., which has been gunning for new business from hard disk drive maker Seagate.

"LSI and Agere will share Seagate as a top customer," Seyrafi wrote in a note to investors. "Agere sells desktop and mobile drive Systems On Chips (SoC), but Marvell sells enterprise read channel chips to Seagate."

"It has been speculated that Marvell will displace LSI at Seagate in selling enterprise hard disk controllers, but the combined LSI-Agere entity may now have an improved chance of increasing its involvement with Seagate in that market due to the amount of business it will have from Seagate."

At least one analyst thought it was possible, though, that Marvell could grow its business with Seagate if there are any hiccups in the LSI-Agere merger.

"Mergers of this size are always difficult to pull off, though with Seagate the top customer for both LSI Logic and Agere, we would think great care would be taken to meet the needs of that customer," wrote CIBC analyst Allan Mishan in a note to investors. "Still, even with strong customer service, a focus on integrating the roadmap will be needed to fend off a very aggressive Marvell over the next 12 months."

Shares of Marvell, which have traded between $15.91 and $36.84 over the last year, were up 49 cents at $20.69 on the Nasdaq.

LSI shares fell $1.21, or 11.5 percent, to $9.35 in morning trading on the New York Stock Exchange. Meanwhile, Agere shares, which have traded between $11.94 and $18.90 over the last year, surged $2.01, or 11.3 percent, to $19.80 and earlier hit a new high of $20.40.

2006-12-01T09:11:00.000-08:00

Shares of network components maker Finisar Corp. sank Thursday in after-hours trading the company said it launched a voluntary investigation into its historical stock option grants and that restatements will likely follow.

The company's stock plunged 20 cents, or 5.2 percent, to $3.63 in after-market trading on the INET electronic exchange, after adding 8 cents to close at $3.83 on the Nasdaq. The shares have ranged between $1.73 and $5.49 over the past year.

Finisar joins a list of at least 187 companies that have disclosed Securities and Exchange Commission, Justice Department or internal probes into possible stock options backdating, according to an AP review.

The company said it reviewed grants made since its initial public offering in 1999 and concluded that it is likely that measurement dates for certain stock option grants differed from the recorded grant dates, and that it will probably need to restate past historical statements to correct the accounting. The company said it does not yet know the financial impact of the restatements, and that the investigation is ongoing.

Finisar also said it will delay filing full fiscal second-quarter results until the probe is complete.

Revenue for the three months ended Oct. 29 rose 25 percent to $108.2 million, from $86.6 million a year ago. While sales fell in the middle of the company's own guidance to $106 million to $112 million, they missed Wall Street's view. Analysts polled by Thomson Financial were looking for revenue of $110 million.

Finisar said optical subsystems and components revenue rose 27.8 percent to $99 million in the quarter. Network test and monitoring systems revenue were flat at $9.2 million.

On Wednesday, the company said its board of directors had approved a medical leave of absence for Chief Financial Officer Stephen K. Workman.

2006-11-29T09:09:00.000-08:00

Semiconductor company Sigma Designs Inc. said Tuesday its fiscal third-quarter revenue nearly tripled, but the company did not post full earnings results because of an ongoing review of its stock option granting practices.

For the quarter ended Oct. 28, revenue totaled $25.1 million, versus $8.5 million in the year-ago period.

Analysts, on average, forecast sales of $23.1 million, according to a poll by Thomson Financial.

The company said the sales increase came from more chipset sales to makers of Internet Protocol TV set-top boxes.

Sigma said its review of past options grants is not complete. The company is one of at least 185 that have disclosed internal or federal probes into their stock options practices.

At issue is the practice of backdating, in which companies issue the options retroactively to coincide with low points in the stock price. This can boost profits for options recipients when they sell the stock at higher prices. While not necessarily illegal, backdating must be disclosed to investors and accounted for properly.

Sigma has acknowledged that some of the actual measurement dates for its past option grants "may differ from the recorded measurement dates."

Shares are up $1.34, or 5.9%, to $24.19. on the Nasdaq.

2006-11-28T17:59:00.000-08:00

Shares of Palm (NASDAQ PALM) were slapped hard on Tuesday, sliding 8% after the handheld-device maker slashed its fiscal second-quarter guidance.

For the period ending Dec. 1, the company now sees adjusted earnings of 15 cents to 16 cents a share, with revenue of $390 million to $395 million. Previously, the company predicted adjusted earnings of 20 cents to 23 cents a share and revenue of $430 million to $450 million. Analysts polled by Thomson First Call project adjusted earnings of 22 cents a share and revenue of $442.6 million.

Palm said that second-quarter results were hurt by a delay in completing the certification process for its Treo 750 smartphone product, which was expected to ship during the quarter. The company now expects to ship the new Treo during its third quarter. Shares were down $1.24 to $14.13 in trading on the NASDAQ.

2006-11-27T12:53:00.000-08:00

Pixelworks Inc., a maker of integrated circuits used in televisions and monitors, said Monday it plans to consolidate North American Operations as part of an additional restructuring plan.

The plan is expected to reduce operating expenses by $16 million to $18 million, on an annualized basis, by the end of 2007. The company said it may also consider making investments to improve operational efficiency. Pixelworks did not say if any jobs would be cut.

The company expects charges of $3.5 million to $4 million, with about $1 million to $1.3 million of those in the fourth quarter, and the remainder to be booked in 2007.

The new plan comes just seven months after a previous restructuring plan announced in April when Pixelworks said it would pull out of stand-alone digital media streaming markets that are not core to advanced television.

The company also extended its form tender offer for its stock option exchange program to Dec. 1. The extension gives members additional time to consider how much they want to participate in light of the additional restructuring.

2006-11-24T14:36:00.000-08:00

The NASDAQ Composite Index pulled back slightly on Friday but continues to break out and hit new highs. This three year chart of the NASDAQ Composite shows the impressive break out that has occurred over the past several weeks. Earnings guidance and sector rotation should continue to propel the NASDAQ to new highs in the coming weeks.

2006-11-24T10:17:00.000-08:00

Computer retailer and distributor Systemax Inc. said Wednesday fiscal second-quarter profit soared, thanks to higher revenue and lower expenses.

For the quarter ended June 30, the company earned $7.1 million, or 19 cents per share, up from $1.5 million, or 4 cents per share, during the same period a year ago.

Sales climbed 8.1 percent to $547.2 million from last year's $506.1 million. North American sales improved 12.5 percent to $375.8 million.

Income from operations more than tripled to $10.6 million from last year's $3.2 million.

Systemax shares were trading up $2.13 to $14.25 on the New York Stock Exchange.

2006-11-22T13:53:00.000-08:00

Both the NASDAQ Composite and the NASDAQ 100 extended their gains on Wednesday. This 3 month chart of the NASDAQ 100 (QQQQ) shows the index's impressive rally as it has broken out to levels not seen in over 5 years.

2006-11-22T08:11:00.000-08:00

The NASDAQ is currently up 7 points in afternoon trading on this Wednesday before Thanksgiving.

Dell shares are climbing almost 10 percent, a day after the big computer maker beat Wall Street earnings estimates with its delayed third-quarter report.

Its shares rose $2.62, or 10.5 percent, to $27.43 in trading on the Nasdaq Stock Market. Its shares have traded in a 52-week range of $18.95 to $33.22.

2006-11-21T14:06:00.000-08:00

Both the NASDAQ Composite and the NASDAQ 100 closed slightly higher on Tuesday. This 10 day chart of the NASDAQ 100 (QQQQ) shows the impressive gains that have been recorded during the past two weeks as the Tech Sector Bulls have taken charge of the market.

2006-11-21T07:47:00.000-08:00

Chip maker Trident Microsystems Inc (NASDAQ Stock Symbol TRID) said Monday its chairman and chief executive, Frank C. Lin, has resigned amid an investigation that found that the company used "incorrect measurement dates" when accounting for stock options grants made to new hires, existing employees and officers.

Trident, which has previously said it would restate past results to correct its stock-options accounting, did not give a specific reason for Lin's resignation, which was effective Nov. 15. The company said a non-executive employee who reported to Lin has also resigned. Glen M. Antle, a director with the company, has been appointed acting CEO.

The company said it expects to record stock options expenses between $40 million to $50 million between 1994 and 2006 as a result of the options irregularities.

Trident said it also plans to separate the roles of chairman and CEO going forward, and will review its corporate governance practices. Trident will also revise the process for administering employee stock options, including limiting the authority to grant stock options.

Trident is among more than 100 companies under investigation for possibly backdating stock options grants, a practice that can increase the potential windfall for options recipients and be illegal if it is not disclosed to investors or accounted for properly.

The company's filing of its results for the fiscal year ended June 30, as well as the fiscal first quarter of 2007 ended Sept. 30, have been delayed pending the completion of its stock options review.

Shares fell $1.01, or 4.8 percent, to $19.80 in after-hours trading, having earlier closed down 11 cents at $20.81 on the Nasdaq.

2006-11-20T14:13:00.000-08:00

The NASDAQ Composite Index added to it's recent gains on Monday. This 21 Day chart displays the tremendous run the market has experienced in recent weeks as positive earnings reports, M&A activity, and sector rotation continues to fuel the market.

2006-11-20T12:21:00.000-08:00

Netsmart Technologies Inc., a software provider for the health care industry, said Monday it agreed to be acquired by private equity partners Insight Venture Partners and Bessemer Venture Partners for about $115 million and will go private.

Some Netsmart executives will partly own the company.

Under terms of the deal, Netsmart shareholders will get $16.50 in cash for each share, a 23.5 percent premium to the average closing price over the last 20 trading days of $13.36. Shares closed Friday at $14.70 on the Nasdaq.

The deal is expected to close in early 2007.

2006-11-20T07:28:00.000-08:00

Rambus (NASDAQ Stock Symbol RMBS) missed its filing deadline due to a stock option review, earning it a delisting notification from the Nasdaq. The Los Altos, Calif., chipmaker was notified by Nasdaq Wednesday that it is in violation of listing guidelines.

The company has said that a "significant number" of stock options granted from 1998 to 2001 were misdated and that it would have to restate its results and take charges of more than $200 million. The options practices in question came during a time when former CEO Geoff Tate ran the company and served on the stock option committee. Tate resigned from the company's board in August.

2006-11-18T10:42:00.000-08:00

The NASDAQ 100 Index posted more strong gains this week. The three month chart shows the 50 Day Moving Average well above the 200 Day Moving Average.......A very bullish signal.

2006-11-17T15:56:00.000-08:00

Autodesk Inc., maker of the design software AutoCAD, on Thursday said it expects to post third-quarter sales of $457 million, but the company withheld full results due to an ongoing probe into past stock option practices.

Sales for the quarter ended in October were roughly in line with analyst expectations for sales of $457.2 million, according to Thomson Financial. The company said sales of 3-D products increased, while revenue from its 2-D products "remains very strong."

Autodesk previously said it expects to record additional stock-based compensation costs but has not yet determined in what amount or if past periods will require restatement. A review by the company's audit committee is ongoing.

Looking ahead, Autodesk forecast fourth-quarter revenue of $490 million to $500 million and fiscal 2007 revenue between $1.83 billion and $1.84 billion. Analysts predict quarterly sales of $495.9 million and annual sales of $1.84 billion.

Shares rose 38 cents to close at $37 on the Nasdaq, and then jumped $1.35, or 3.7 percent, to $38.35 in aftermarket trading on the INET.

2006-11-16T10:47:00.000-08:00

This 5 day chart of NASDAQ composite shows a powerful uptrend. After breaking through resistance the index has moved up in consecutive trading sessions. At this point the bulls are fully in charge.

2006-11-15T13:27:00.000-08:00

Another new high for the Nasdaq on Wednesday. This 3 month chart shows an extremely bullish uptrend. The index is currently at a 5 year high.

2006-11-14T11:51:00.000-08:00

This one year chart of the NASDAQ Composite Index shows the recent breakout through resistance at the 2360 level. This is a very bullish signal for the market as evidenced by the today's mid-day reversal and subsequent up turn to new highs.

2006-11-14T07:56:00.000-08:00

Business software provider Lawson Software Inc. said Monday its board approved a share repurchase program of up to $100 million.

The stock repurchase will be funded using Lawson's existing cash balance and future cash flows, the company said. The company had about 186.4 million shares outstanding as of Aug. 31.

Share repurchases will be through open market purchases, private transactions or structured transactions through investment banking institutions, the company said.

Shares of Lawson advanced 2 cents on Monday to close at $7.57 on the Nasdaq. In aftermarket activity, they lost 45 cents, or 5.9 percent, to $7.12. They have ranged between $5.39 and $8.25 over the past year.

Shares were trading down 45 cents, or 5.9%, to $7.12 in Nasdaq trading on Tuesday morning.

2006-11-13T08:24:00.000-08:00

The Nasdaq 100 rally continues on Monday with the index hitting a new 52 week high at $43.54

2006-11-10T09:27:00.000-08:00

This 3 Month Chart Of The NASDAQ 100 Shows A Very Strong Uptrend. Look For The Rally To Continue Through The End Of Q4 2006.

2006-11-10T06:47:00.000-08:00

Shares of Nvidia rose in premarket trading after the graphics chip maker blew past Wall Street estimates for the third quarter and posted market share gains in each of its core businesses.

Nvidia shares gained 19 cents to $35.48 in premarket electronic trading, after closing the regular session Thursday at $35.24 on Nasdaq, where they have traded in a 52-week range of $16.42 to $36.20. The shares have gained about 10 percent over the past year.

The Santa Clara, Calif.-based company posted quarterly earnings of 39 cents per share before stock option expenses, well above the Thomson Financial estimate of 35 cents per share. Revenue jumped 19 percent to $820.6 million, beating Wall Street's target of $753.6 million.

Jen-Hsun Huang, the company's president and chief executive, called the quarter one of the best in the company's history.

However, some analysts recommended profit taking on the shares, as they see more limited upside potential at the company.

Stifel Nicolaus analyst W. Blake Fischer downgraded the shares to "Sell" from "Hold," citing concern about the potential for gross margin improvements and the stock's price.

ThinkEquity Partners analyst Eric Ross also noted that the stock is trading well above its peers and faces "more risk than bulls care to admit," adding that average selling prices were down overall, die sizes are increasing and rival ATI Technologies is likely to have a competitive offering in the near future. Ross reiterated his "Sell" rating on the stock and raised his price target to $28 from $25.

Freidman Billings Ramsey analyst Chris Caso said Nvidia still has good momentum entering 2007, due to the expected ramp of its new high end graphics processing unit, as well as the launch of Microsoft Vista. He still sees upside potential and reiterated his "Outperform" rating, raising his price target from $36 to $40 on higher estimates.

2006-11-09T09:29:00.000-08:00

This one year chart of the NASDAQ 100 Index (QQQQ) shows a move towards a double top breakout at 43.

2006-11-09T07:13:00.000-08:00

Cisco Systems pushed technology stocks higher Thursday after the world's largest networking equipment maker reported a 28 percent jump in fiscal first-quarter profit.

CSCO surged $1.90, or 7.6 percent, to $27. The company said its acquisition of Scientific-Atlanta Inc. pushed sales up 25 percent. UBS also upgraded the stock on the results, and predicted strong future growth.

2006-11-08T19:30:00.000-08:00

Tech sector giant Cisco Systems Inc., the world's largest networking equipment maker, said Wednesday its first-quarter earnings surged 28 percent over last year as customers spent gingerly to upgrade their networks to accommodate faster Internet traffic.

The tech bellwether also profited from its recent $6.9 billion acquisition of Scientific-Atlanta Inc., the world's second-largest cable television box seller, which added $584 million to Cisco's sales during the quarter. The deal closed in February.

Cisco's net income for the quarter ending Oct. 28 was $1.61 billion, or 26 cents per share, compared with $1.26 billion, or 20 cents per share, in the same period last year.

Quarterly sales for the San Jose-based company, which makes the routers, switches and other devices used to link networks and direct traffic on the Internet, were $8.18 billion, compared with $6.55 billion last year. Cisco also produces digital subscriber line and cable broadband equipment, Voice over Internet Protocol telephone service products and network management software.

Excluding one-time charges, Cisco would have earned $1.9 billion, or 31 cents per share.

The company was expected to earn, on average, 29 cents per share on $7.9 billion in revenue, according to analysts surveyed by Thomson Financial.

John Chambers, Cisco's chief executive officer, said in a conference call that Cisco is succeeding in convincing customers to think of the network as the central platform for communications and IT needs.

"The balance was amazingly good everywhere," Chambers said. "All elements of our vision have evolved as we thought."

Sales increased across the company's core line of products. Growth was particularly strong in emerging markets such as Eastern Europe, Latin America, Africa and the Middle East, where orders were up over 40 percent, and the commercial and service provider markets, said Dennis Powell, Cisco's chief financial officer.

"It wasn't just one area that drove this," Powell said in an interview with The Associated Press. "We were hitting on all cylinders. Every product and every geography was performing extremely well for us."

Cisco expects the momentum to help drive 24 to 25 percent year-over-year revenue growth in the fiscal second quarter, which would translate to about $8.2 billion or $8.3 billion in quarterly revenue, Powell said.

Analysts said Cisco's broad-based growth reflected a general strengthening in the networking industry, as customers scramble to upgrade outdated gear and accommodate growing bandwidth demands.

"It's not quite the perfect storm, but a lot of things aligned nicely for them to be able to put these numbers up," said Zeus Kerravala, an analyst with the Yankee Group. "There was strength all over the place."

The results were announced after the market closed. The company's stock price gained as much as 9 percent in after-hours trading, rising $2.26 to $27.36. Cisco's stock closed up 26 cents, or about 1 percent, to $25.10 on the Nasdaq Stock Market.

2006-11-08T13:17:00.000-08:00

-Cisco (NASDAQ CSCO), the worldwide leader in networking that transforms how people connect, communicate and collaborate, today reported its first quarter results for the period ended October 28, 2006. Cisco reported first quarter net sales of $8.2 billion, net income on a generally accepted accounting principles (GAAP) basis of $1.6 billion or $0.26 per share, and non-GAAP net income of $1.9 billion or $0.31 per share. Scientific-Atlanta, Inc., acquired during the third quarter of fiscal 2006, contributed net sales of $584 million during the first quarter of fiscal 2007.

"Cisco delivered another strong quarter, with record results from a revenue, net income and earnings per share perspective," said John Chambers, Cisco president and CEO. "This strong momentum demonstrates that customers increasingly share our vision of the network as the platform for all forms of communication and IT."

"We are in the midst of a market inflection that is changing the landscape of networking, and we believe the network is becoming the platform for the next generation of IT, revolutionizing the way people connect, communicate and collaborate. We laid the cornerstones for our strategy to capture this shift several years ago and believe we are now uniquely positioned for continued growth and increased share of our customers' total IT spend."

2006-11-07T17:10:00.000-08:00

Software maker Novell Corp. (NASDAQ NOVL) said on Tuesday Microsoft Corp. (NASDAQ MSFT) will make two separate up-front payments totaling $348 million to the company under an agreement to allow Novell's open-source Linux software to work with Windows.

Microsoft will pay Novell $240 million up front in subscription fees to allow the world's largest software maker to use its Linux software. Microsoft will pay an additional $108 million upfront for use of patents, Novell said in a filing with the U.S. Securities and Exchange Commission.

Last week, Microsoft and Novell entered a broad set of business and technological agreements to make their products work together better to serve corporate customers using both Linux and Windows computer servers.

Linux is the most popular variant of open-source software. Unlike proprietary software, open-source software lets developers share code and add functions, and users only pay for custom features, maintenance and technical support.

Microsoft agreed not to sign a similar agreement with any other Linux distributor for three years. Microsoft's pact with Novell dealt a blow to other Linux distributors such as market leader Red Hat Inc. (NASDAQ RHAT), according to analysts.

Under the pact, which will run until at least 2012, Novell will also pay Microsoft at least $40 million over five years for use of Microsoft's patents based on a percentage of its revenue from open-source products.

Microsoft also agreed to spend $12 million a year to market scenarios where users can virtually run Linux on Windows machines and vice versa. Microsoft will also spend $34 million over the life of the agreement to put in place a sales force devoted to the combined offering, Novell said.

Prior to the filing, Microsoft shares rose 11 cents to $28.95 in Tuesday Nasdaq trade. Novell, up more than 10 percent since news of the pact last week, fell 12 cents to $6.50.

2006-11-02T12:44:00.000-08:00

Entegris Inc., which supplies products used to process and make semiconductors, said Thursday it swung to a third-quarter profit, but the company issued disappointing guidance, sending shares down in premarket trading.

Net income for the third quarter rose to $17.8 million, or 13 cents per share, from a loss of $18 million, or 16 cents per share, a year ago. The latest period includes various merger-related and other restructuring charges, as well as 2 cents per share in stock options costs. Excluding these, income was 16 cents per share.

Sales from continuing operations climbed 41 percent to $171.3 million from $121.3 million a year ago. The company said unit-driven sales, which accounted for 61 percent of the total, were about even sequentially, while capital-driven sales, or 39 percent of total sales, declined as expected from a particularly strong second quarter.

The company said gross margin suffered primarily because of isolated manufacturing inefficiencies at a North American facility as well as lower production levels.

According to Thomson Financial, analysts expected the company to earn 17 cents per share on revenue of $177.5 million.

Looking ahead to the fourth quarter, Entegris expects to earn 11 cents to 14 cents per share, excluding items, or 9 cents to 12 cents per share including items. Sales are pegged between $155 million and $163 million.

The estimates fell short of the average analyst estimate of 17 cents per share and sales of $178.9 million.

In premarket trading, shares of Entegris fell 5.3 percent, or 57 cents, to $10.22.

2006-11-02T08:33:00.000-08:00

Microvision (Nasdaq:MVIS), the global leader in light scanning technologies for display and imaging products, announced today that it has entered into a joint development agreement with a major Asian consumer electronics manufacturer. The agreement focuses on development of high-volume design for manufacturing of Microvision’s proprietary Integrated Photonics Module (IPM™), a tiny display engine suitable for a variety of display applications, including ultra-miniature laser projectors for mobile phones.

Under the agreement, the parties will cooperate to optimize Microvision’s IPM designs for high-volume manufacturing and may engage in marketing and product development discussions with prospective OEM customers. For confidentiality reasons, the name of the Asian manufacturer and other terms of the agreement were withheld. Potential applications for the IPM platform include ultra-miniature laser projectors for embedded or accessory solutions for mobile phones, personal media players, laptops and DVD players. Additional applications include lightweight color eyewear and heads-up displays for automobiles and airplanes. Target customers are major consumer electronics OEMs and large tier 1 automotive integrators.

“This agreement marks an important milestone on our roadmap to the commercialization of high-volume products based on the company’s new proprietary IPM architecture,” said Alexander Tokman, President and CEO of Microvision. “We are extremely pleased to be working closely with one of the world’s leading developers and manufacturers of consumer electronics and commercial equipment and a company with a truly global reach. To execute on our plan to bring the IPM to market with the right performance, quality and cost in products such as an embedded or accessory ultra-miniature laser projector (PicoP™) and automotive heads-up display, it is critically important for us to align ourselves with one or more proven, strategic manufacturing partners.

“We anticipate that our efforts with this world-leading consumer electronics partner will accelerate our time-to-market, and provide the potential for establishing the global capacity we require to serve large commercial markets with our IPM platform technology.”

2006-10-31T18:37:00.000-08:00

Nuance Communications Inc. (NUAN), a
speech and imaging solutions provider, on Tuesday raised its
outlook for the fiscal fourth quarter ended Sept. 30.

The company expects a loss of 1 cent to 2 cents a share on

revenue of $126 million to $128 million for the quarter.
Excluding special items, its estimate is for earnings of 13
cents to 14 cents a share.

In August, it had forecast a loss of 3 cents a share on
revenues of $116 million to $120 million. Including items, its
estimate was for earnings of 11 cents to 12 cents a share.

2006-10-28T16:36:00.000-07:00

WebMethods Inc. will delay the release of its third-quarter earnings report until Nov. 2, the company said Wednesday.

The Fairfax, Va.-based software company said it rescheduled this quarter's earnings statement in order to take into account the acquisition of Infravio and Cerebra, which were completed during the second quarter of this year.

Earlier this month, webMethods released preliminary results, which did not include results from the purchases. The company said it expects results to reflect the preliminary report.

Shares of webMethods dropped 3 cents to close at $7.39 on the Nasdaq.

2006-10-26T13:37:00.000-07:00

Microsoft Corp. (NASDAQ MSFT) posted a rise in quarterly net profit on Thursday, boosted by a strong performance at its database software division.

The world's largest software maker reported a net profit of $3.48 billion, or 35 cents per diluted share, in its fiscal first quarter ended September 30 versus a profit of $3.14 billion, or 29 cents per diluted share, in the year-ago period. Sales rose 11 percent to $10.8 billion in the quarter.

Analysts, on average, had forecast Microsoft to report earnings per share of 31 cents on revenue of $10.7 billion, according to Reuters Estimates.

Microsoft posted sales and profit growth at its server and tools business, powered by strong sales of its database software platform, SQL Server, and solid demand for its Windows server software.

Shares of Microsoft have risen about 25 percent since June, soaring to a near-two-year high based on investor optimism that much-anticipated upgrades of its Windows operating system and Office software suite will soon pay dividends.

2006-10-26T11:09:00.000-07:00

Shares of NetLogic Microsystems Inc., a designer of processors used in networking systems, plummeted in afternoon trading on Thursday after the company posted a 5 percent drop in third-quarter profit, and issued a disappointing fourth-quarter outlook.

For the quarter ended Sept. 30, the company on Wednesday reported a profit of $3.4 million, or 16 cents per share, down from $3.6 million, or 19 cents per share, last year, even as revenue climbed up 3 percent to $26.6 million.

Jeffries & Co. analyst Adam Benjamin, who has a "Buy" rating on the stock, cut his 2007 earnings estimate to $1.01 per share, from $1.46 per share, and lowered revenue guidance for the year to $102 million from $131 million. Analysts currently expect the company, on average, to post 2007 earnings of $1.47 per share on $129.5 million in sales.

Caris & Co. analyst Nicholas Aberle, cut his rating on the stock to "Above Average" from "Buy" and said an inventory correction, as well as the delayed release of a new product, may weigh on the company over the near-term.

"(A) U.S. inventory correction and fading Asia demand (may) materially impact fourth-quarter results," Aberle wrote in a note to investors. "NetLogic provided December quarter guidance which was much softer than expected, with revenues expected to fall roughly 13 percent quarter-over-quarter to $23 million, thereby driving earnings per share down to 24 cents per share."

Analysts polled by Thomson Financial expect the company to post, on average, earnings of 35 cents per share on $28.2 million in sales.

Shares of NetLogic, which have traded between $18.69 and $45.03 over the last year, were down $5.37, or 22 percent, at $19.11 in afternoon trading. Earlier in the session shares set a new 52-week low of $18.66 on the Nasdaq.

2006-10-26T09:52:00.000-07:00

Oracle Corp. Chief Executive Larry Ellison is shaking up the software industry again, only this time a takeover bid isn't involved -- yet.

Ellison posed a challenge to Linux software leader Red Hat Inc. late Wednesday by announcing that Oracle would begin offering maintenance services for Red Hat products -- and charge less for that than Red Hat does. Red Hat shares were crushed by the news.

Redwood Shores-based Oracle expects to offer discounts of at least 50 percent. The threat wiped out more than one-quarter of Red Hat's market value -- nearly $1 billion -- amid Thursday's deepening investor worries about the much smaller company's ability to withstand the challenge.

The assault on Red Hat continues Ellison's aggressive efforts to build upon the market clout that Oracle already amassed as the world's second-largest software vendor behind Microsoft Corp.

Oracle has spent about $20 billion snapping up other business software makers during the past two years, sometimes refusing to take no for an answer. In the biggest deal of the lot, Oracle launched a hostile bid for PeopleSoft Inc. that took 18 months to complete.

If Red Hat's stock continues to falter, the company could become increasingly vulnerable to a takeover. Oracle executives refused Wednesday to say if they might be interested in buying Red Hat.

"I don't think this will kill Red Hat," Ellison said Wednesday in response to a question from a packed audience attending the biggest convention in Oracle's 29-year history. "This is capitalism. We are competing."

Global Equities Research analyst Trip Chowdhry believes Red Hat might turn into a prime takeover target, but predicted IBM Corp. is more likely to be the buyer than Oracle.

Investors are convinced Oracle's attack will hurt Raleigh, N.C.-based Red Hat.

The company's stock plunged $5.05, or 25.9 percent, to $14.46 during Thursday morning trading on the Nasdaq Stock Market, where Oracle's shares fell 6 cents to $18.56.

Red Hat Chairman Matthew Szulik downplayed the threat to his company, hailing Oracle's move as a positive development for Linux -- an alternative to the dominant Windows operating system that fuels Microsoft's profits.

"There are always concerns, but keep in mind that Oracle ... acknowledged that Red Hat is the technical leader in the market," Szulik said. "We still have a rich product pipeline. We will compete."

Chowdhry thinks Wall Street's concerns about Red Hat are justified. He predicted Oracle's move will trim Red Hat's revenue by about $40 million to $50 million annually. Red Hat's revenue in its last fiscal year totaled $278 million -- a fraction of Oracle's $14.4 billion in revenue.

"Oracle has outsmarted Red Hat," Chowdhry said.

Oracle's challenge comes just a few months after Red Hat trumped Oracle by buying open-source software maker JBoss Inc. for $350 million.

Red Hat's handling of the JBoss deal was just one of several factors that irritated Oracle, Chowdhry said. He believes Red Hat made a crucial mistake by bragging that its Linux products would turn software into a commodity, prompting Ellison to attempt to counterattack.

Ellison said he is more interested in accelerating the open-source movement than crushing Red Hat.

Because much of Oracle's propriety software is designed to run on the Linux operating system, Ellison believes the company will make more money if more major corporate customers embrace open-source software.

Oracle's push into Red Hat's market won't affect financial results for at least the next few quarters, Chief Financial Officer Safra Catz told analysts during a Thursday meeting.

But Ellison's cutthroat tactics could position Oracle to hire away Red Hat's top talent since those workers are more likely to be worrying about their job security, said software industry consultant Joshua Greenbaum.

"Larry plays a hardball game," said Greenbaum, who runs Enterprise Applications Consulting. "This shows he hasn't lost his touch for savvy moves or drama."

Ellison's flair has paying off recently as both Oracle's profits and stock price have been climbing.

Oracle's market value has increased by $34 billion this year, a gain of more than 50 percent that has increased Ellison's net worth by about $8 billion.

2006-10-25T13:56:00.000-07:00

QLogic Corp., a maker of network switches and adapters, said Tuesday its fiscal second-quarter profit fell despite higher sales.

For the quarter ended Oct. 1, the company earned $30.4 million, or 19 cents per share, down 29 percent from $43 million, or 24 cents per share, during the same period a year ago.

Excluding stock options costs, the amortization of intangible assets and acquisition costs, the company earned $38.3 million, or 24 cents per share, from continuing operations in the most recent quarter. Income from continuing operations totaled $30.5 million, or 17 cents per share, in the year-ago period.

Revenue rose 22 percent to $145.3 million from last year's $119 million.

Analysts, on average, were looking for earnings of 22 cents per share on sales of $141.2 million, according to a Thomson Financial poll.

QLogic said revenue from its storage area network infrastructure products helped boost the quarter's results.

Shares slipped 6 cents to $19.17 in after-hours trading, after losing 10 cents to end at $19.23 on the Nasdaq.

2006-10-25T09:13:00.000-07:00

Digital Angel Corp shares soared 41% to $3.53 in Wednesday morning trade after the South St. Paul, Minn.-based company said the U.S. Patent and Trademark Office has granted it a patent for its syringe-implantable glucose-sensing RFID microchip. The microchip measures the glucose concentration levels of diabetic patients, the company said. Digital Angel said its sister company, VeriChip, will market and distribute the product. Shares of Applied Digital Inc.(ADSX), the majority owner of Digital Angel, jumped more than 50% on the news.

2006-10-24T18:19:00.000-07:00

Web travel-search company Travelzoo Inc. said Tuesday its third-quarter profit almost doubled on continued growth in online advertising.

The profit results beat Wall Street's estimates, but sales growth fell short of analysts' projections. Shares surged $6.60, or 20 percent, to $39 in morning trading on the Nasdaq, where they've traded between $16.50 and $52.99 over the past year.

Net income grew to $4.6 million, or 28 cents per share, from $2.3 million, or 13 cents per share, in the prior-year period. The results topped Wall Street's expectations of 24 cents per share, according to an analyst poll by Thomson Financial.

Revenue rose to $17.6 million in the quarter, up from $13.4 million in the year-ago period. Analysts, on average, had expected $18.2 million.

Travelzoo reported quarterly revenue growth at both its North American and European units. Also aiding the bottom line, Travelzoo said its effective income tax rate for the quarter was 46 percent, down from 48 percent in the year-ago period.

2006-10-23T15:22:00.000-07:00

Texas Instruments Inc., which makes chips for mobile phones, said Monday that profit rose slightly in the third quarter, but it warned that orders declined and fourth-quarter semiconductor growth will be below the seasonal average.

Texas Instruments said it earned $702 million, or 46 cents per share, in the July-September period compared to $631 million, or 38 cents per share, a year earlier.

Profit from continuing operations were 45 cents per share.

Analysts had expected TI to earn 45 cents per share, according to a survey by Thomson Financial. Last month, TI predicted operating profit would be 44 to 46 cents per share.

Revenue rose 13 percent to $3.76 billion from $3.34 billion a year ago, slightly below analysts' forecast of $3.80 billion.

The company expects fourth-quarter earnings of 40 to 46 cents per share on sales of $3.46 billion to $3.75 billion. Analysts were expecting profit of 45 cents per share on higher revenue -- $3.81 billion.

Chief Executive Richard Templeton said the third quarter was one of the best in the company's history, but he also warned about a 12 percent decline in orders.

Templeton said TI believes that customers -- manufacturers that use TI chips in their products -- have built up their inventories and are running leaner, and that the wireless market will tilt toward low-priced cell phones.

The shift toward lower-end phones means a decline in the average value of the TI components in handsets, said Ron Slaymaker, TI's vice president of investor relations.

"We don't hear our customers talk about any broad turndown in consumption, it's just the mix in wireless," Slaymaker said.

Slaymaker said the company believes the order decline "is near term." But the slowdown is occurring in the traditionally strong fourth quarter, and the first quarter is usually weaker.

To deal with the slowdown in orders, TI has slowed new hiring and reduced travel and other discretionary spending, Slaymaker said.

In trading before financial results were announced, TI shares rose 51 cents or 1.6 percent, to $31.88 on the New York Stock Exchange. In after-hours trading, the shares were down 58 cents or 1.8 percent, to $31.30.

2006-10-23T00:14:00.000-07:00

Mobile phone chip maker Texas Instruments Inc. reports third-quarter earnings on Monday. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: Analysts are betting that solid sales of mobile phones will help Texas Instruments deliver a strong third quarter, but concern has cropped up that the company could be in for a soft fourth quarter.

Cell phone maker Nokia Corp., which is one of Texas Instrument's largest customers, said on Thursday sales of low-priced handsets ate away at third-quarter margins.

The company also said that although it expects the value of the global mobile market to grow, it believes the average selling price of mobile phones will continue to decline.

BY THE NUMBERS: Analysts polled by Thomson Financial expect the company to report, on average, earnings of 45 cents per share on $3.8 billion in revenue.

The company narrowed its third-quarter outlook in September, when it said it expects a quarterly profit between 44 cents and 46 cents per share from continuing operations, compared with previous guidance of 42 cents to 48 cents.

TI also narrowed its revenue forecast to between $3.71 billion and $3.87 billion, sharpened from a previous forecast for $3.63 billion to $3.95 billion.

ANALYST TAKE: UBS analyst Uche Orji, who has a "Buy" rating on the stock, wrote in a client note that although the company may be able to grow both market share and gross margins over 2007, in the near-term, he thinks an inventory correction and a transition to low-end handset sales could put the company in a pinch.

Deutsche Bank analyst Ross Seymore, who has a "Buy" rating on the stock, thinks Texas Instruments will meet the Street's estimates, but is predicting weak fourth-quarter guidance.

"The company will likely not be immune to recent softness in analog sales, and comments from Nokia about soft 3G market in Europe could offset gains from new entry-level products," said Seymore, in a note to clients. "While fourth-quarter guidance may be cautious, we believe Texas Instrument's valuation remains attractive."

STOCK PERFORMANCE: Shares of Texas Instruments tumbled at the start of the quarter and hit a 52-week low of $26.77 on July 21, then shot up more than 25 percent in the following weeks to reach $33.89 on Sept. 28. The final trading day of the period, shares gave up nearly 2 percent of that gain, to end at $33.25.

The stock closed Friday at $31.37 on the New York Stock Exchange.

2006-10-20T14:22:00.000-07:00

Shares of SanDisk Corp. plummeted Friday after the flash memory maker posted better than expected third-quarter results but forecast a continued decline in flash memory prices.

The stock, which has traded between $37.34 and $79.80 over the last 52-weeks, was down $12.09, or 19.6 percent, at $49.64 in afternoon trading on the Nasdaq on quadruple its average trading volume.

On Thursday Sandisk posted a 4 percent decline in third-quarter profit but topped analysts' expectations.

However, the company said third-quarter average selling prices per megabyte of flash memory fell 25 percent sequentially, with expectations for fourth-quarter prices to drop 15 to 20 percent sequentially.

Citigroup analyst Craig Ellis cut his rating on the stock to "Hold" from "Buy" and said SanDisk is no longer a "new money idea."

"We are now incrementally more cautious in our SanDisk modeling, the company's near-term catalyst profile, and in longer-term share appreciation potential," he wrote in a note to clients. "Given these considerations, we can no longer argue for new money to be put to work in the name."

Other analysts were not as bearish on SanDisk's results.

In a client note, UBS's Alex Gauna wrote that results "were slightly shy of UBS expectations but exceeded consensus estimates on much better than expected bit growth and higher royalty and licensing revenue." He added that, "We were quite surprised by the magnitude of initial adverse reaction to SanDisk results."

W.R. Hambrecht analyst Daniel Amir said the company had a good quarter and speculated that investors may have been disappointed because SanDisk did not meet "whisper" numbers for the quarter.

"We view any sell-off in the stock today as a buying opportunity for investors," Amir wrote in a note to clients.

2006-10-19T13:23:00.000-07:00

Google profit jumps, gross revenue up 70 percent

- Google Inc. said on Thursday quarterly profit rose 92 percent as the company tightened its grip on the Web search market.

Net income for the third quarter grew to $733.4 million, or $2.36 per diluted share, compared with the year-earlier quarter's $381.2 million, or $1.32 per share.

Gross revenue rose 70 percent to $2.69. Excluding traffic acquisition costs of $825 million, the financial cut which affiliated Web sites receive for featuring Google advertising, revenue rose to $1.87 billion.

Analysts had been looking for a net profit, on average, of $2.13 per share, according to Reuters Estimates. Excluding stock-based compensation and amortization, the consensus forecast was for a profit of $760.1 million, or $2.41 a share.

Wall Street analysts on average had projected revenue, excluding what Google pays to Web site affiliates, to rise 66 percent from the year earlier to $2.62 billion, according to Reuters Estimates. Forecasts ranged between $2.48 billion and $2.76 billion.

2006-10-18T13:46:00.000-07:00

EBay Beats Wall Street's Expectations As Third-Quarter Profit Increases 10 Percent

EBay Inc. reported Wednesday that third-quarter profit increased 10 percent from the same period last year, beating Wall Street's moderate expectations and encouraging executives to raise earnings forecasts for the full year.

The San Jose-based online auction company earned $280.9 million, or 20 cents per share, for the three months ended Sept. 30, compared to $254.97 million, or 18 cents per share in the year-ago period.

Revenue for the third quarter totaled $1.45 billion, up 31 percent from last year's $1.11 billion and at the high end of what Wall Street traders had expected.

Excluding charges unrelated to ongoing operations, eBay earned $367.41 million, or 26 cents per share, up nearly 24 percent from the same quarter last year, when eBay earned $280.16 million, or 20 cents per share.

On that basis, which doesn't comply with generally accepted accounting principles, eBay was expected to earn $342.4 million, or 24 cents per share, on sales of $1.43 billion, according to analysts polled by Thomson Financial.

Excluding one-time costs, the company expects a profit of 27 cents to 28 cents per share in the fourth quarter -- traditionally the company's strongest, thanks to holiday shoppers -- on revenue in the range of $1.62 billion to $1.68 billion.

For all of 2006, the company expects to earn $1.01 to $1.02 per share on revenue in the range of $5.87 billion to $5.93 billion.

That's slightly more bullish than eBay executives were at the end of the second quarter. In July, the company said it would likely earn 98 cents to $1.01 per share in 2006 on revenue in the range of $5.7 billion to $5.9 billion.

EBay shares closed Wednesday at $28.50, down 28 cents, or nearly 1 percent, before the earnings report was released. The stock has traded in a 52-week range between $22.83 and $47.86.

2006-10-18T10:59:00.000-07:00

Information storage company Datalink Corp. on Wednesday said earnings for the third quarter rose from a year ago as the company doubled the number of large businesses it serves.

Net income rose to $1.3 million, or 11 cents per share, from $295,000, or 3 cents per share, a year ago.

Revenue increased to $33.2 million from $31.2 million, with service revenue hitting a quarterly high of just over $11 million.

Datalink said the number of large businesses it counts as customers rose to 15 in the latest quarter from 8 a year ago. Those companies each generated more than $500,000 in revenue, with one accounting for 13 percent of overall revenue in the quarter. The company's customers include food processor Tyson Foods, wireless telecom Cingular and finance company GMAC Residential.

The company said it expects earnings for the fourth quarter to range from 11 cents to 16 cents per share, with revenue coming in between $36 million and $40 million.

2006-10-17T22:41:00.000-07:00

Google Inc. reports earnings for the fiscal third quarter on Thursday. The following is a summary of key developments and analyst opinion related to the period.

OVERVIEW: The Mountain View, Calif.-based company remained head and shoulders above its nearest competitor for U.S. search queries. In August, Google captured 44.1 percent of searches, while the No. 2 player, Yahoo Inc., trailed with 28.7 percent, according to data from comScore qSearch.

August was a busy month for deals.

The company inked an agreement to provide search for News Corp.'s Fox Interactive Media Web sites, which include the popular social hangout, MySpace.com. Google will send at least $900 million in advertising revenue to the media conglomerate over three years in exchange for the right to sell advertising on the sites.

Google signed on to provide text advertising on eBay sites outside the U.S., and joined forces with eBay and its Skype Voice over Internet Protocol technology to develop click-to-call advertising.

The search leader also signed a distribution deal with Viacom Inc. to distribute MTV Networks video clips over its advertiser network, as well as to sell some for $1.99 on Google Video.

BY THE NUMBERS: Google doesn't issue regular guidance, but analysts polled by Thomson Financial expect earnings of $2.42 per share on $1.81 billion in revenue.

ANALYST TAKE: In an Oct. 8 note to investors, Citigroup analyst Mark Mahaney wrote that Yahoo Inc.'s announcement that weakness in automotive and financial services advertising would weigh down third-quarter results was "the biggest intra-quarter development for Google."

The analyst wrote, "Our call is that Google has most likely been insulated from this weakness," as it has fewer sites devoted to those areas than Yahoo. Manahey also noted that Google relies more on search ads and less on display ads, and takes a higher percentage of revenue from international business compared with Yahoo.

Mahaney wrote that he expects Google to post results in line with expectations.

Jeffries analyst Youssef Squali wrote in an Oct. 12 note to investors that he expects Google to post solid third-quarter earnings, driven by incremental market share gains in search. The analyst added that he expects Google to report increased revenue from its own sites and its network of advertisers, for total gross advertising revenue of $2.65 billion.

Lehman Brothers analyst Douglas Anmuth wrote in an Oct. 5 investor note that he expects Google to meet or beat estimates, but that while the company undoubtedly improved in the quarter, it faces tough year-over-year comparisons.

STOCK PERFORMANCE: Shares of Google fell 4.2 percent during the quarter, ending September at $401.90 on the Nasdaq. In the past 52 weeks, the company's stock has traded between $294.56 and $475.11.

2006-10-17T20:37:00.000-07:00

IBM Handily Tops 3Q Forecasts With 5 Percent Revenue Growth; Profit Jumps 50 Percent

International Business Machines Corp. handily topped Wall Street forecasts for the third quarter, with revenue growing 5 percent as strong sales of software and hardware helped offset more weak growth in the key computer services business.

The quarter's net profit of $2.22 billion marked a 50 percent improvement from a year ago, thanks largely to a lower tax bill.

Net income for the three months ended Sept. 30 amounted to $1.45 per share. In the same period last year, IBM earned $1.52 billion, or 94 cents a share, as the company absorbed a $525 million tax expense on foreign earnings that were repatriated to the United States.

Wall Street analysts expected a per share profit of $1.35, according to a survey by Thomson Financial.

IBM's share price surged 5.5 percent to a 52-week high following the report, rising $4.78 to $91.78 in after-hours trading. The stock had risen 24 cents to $86.95 on the New York Stock Exchange in advance of the report, which came after the close of Tuesday's regular session.

Third-quarter revenue totaled $22.62 billion, up from $21.53 billion a year earlier. Global services accounted for $12.02 billion of the tally, an increase of just 2.7 percent. Hardware sales improved 8.9 percent to $5.58 billion, while software revenue rose 8.5 percent to $4.41 billion.

Despite the better-than-expected showing, analysts peppered the company's chief financial officer with questions about another disappointing performance for the services business, which accounts for more than half of IBM's revenue.

Profit margins from the services business improved to 27.8 percent from 26.1 percent in the year-ago period. But adding to the concerns voiced by analysts, IBM reported that the unit had signed $10.5 billion in new contracts, down 29 percent from the year-ago period and the second straight disappointing quarter for that indicator of future revenues.

The tally marked an improvement from this year's second quarter, when there were $9.6 billion in new contracts, but CFO Mark Loughridge acknowledged that a number of major deals expected to be finalized by the end of September "slipped out of the quarter."

"We fully expected to grow our signings more. We just didn't get the deals closed," CFO Mark Loughridge said in a conference call after the report, noting that the current quarter's signings should benefit from the delay.

"I want to point out that although revenue growth for services was not at our objective, it was an improvement from the second quarter to the third quarter," he said. "We need to continue that momentum."

Software "was our largest profit contributor," Loughridge said. "We've been investing heavily in our software business for some time. Our performance in 2006 underscores that this strategy is working."

IBM said its gross profit margin improved a notch to 42 percent, up from 40.6 percent in last year's third quarter.

In the first nine months of 2006, IBM earned $5.95 billion, or $3.81 per share. In the same period last year, earnings totaled $4.75 billion, or $2.90 per share, a number that also reflects the big tax expense. Revenue so far in 2006 has totaled $66.71 billion. That's down 2.3 percent from $66.71 billion in the year-ago period, which included sales from the personal computer business that was sold to China's Lenovo Group Ltd.

2006-10-17T14:20:00.000-07:00

Yahoo Inc.'s third-quarter profit slid 38 percent amid slowing revenue growth that has raised investor doubts about the Internet bellwether's strategy and execution.The Sunnyvale-based company said Tuesday that it earned $158.5 million, or 11 cents per share, for the three months ended in September. That compared with net income of $253.8 million, or 17 cents per share, in the same period last year.

The results matched analyst expectations, according to Thomson Financial.

The quarters weren't totally comparable because of new accounting rules requiring Yahoo to deduct the cost of employee stock options from this year's profit.

Revenue for this year's quarter totaled $1.58 billion, a 19 percent increase from $1.33 billion last year.

After subtracting commissions Yahoo paid its advertising partners, the third-quarter revenue fell to $1.12 billion. That figure missed analyst expectations that had been lowered by Yahoo management a month ago.

"While we are tremendously excited about many things happening at Yahoo, we are not satisfied with our third quarter financial performance," Yahoo Chairman Terry Semel.

Investors have been disappointed with Yahoo for most of this year, largely because the company hasn't been targeting online ads as effectively as Google Inc., the Internet search leader that runs the Web's largest marketing network.

Although it continues to run the most trafficked Web site on the Internet, Yahoo is facing a stiffer challenge from recent upstarts like MySpace.com, Facebook.com and YouTube.com, which Google is in the process of buying for $1.65 billion.

The problems have battered Yahoo's stock price, which has dropped by 38 percent this year. Yahoo shares dipped 3 cents Tuesday to close at $25.15 on the Nasdaq Stock Market, then regained 45 cents, or 2 percent, in extended trading.

2006-10-17T13:34:00.000-07:00

Motorola 3Q Profits Drop 45 Percent on Lower-Than-Expected Sales

Motorola Inc., the world's second-largest cell-phone maker behind Finland's Nokia Corp., reported a 45 percent decline in third-quarter profit Tuesday on revenue that came in well below analysts' expectations.

The earnings met Wall Street's estimates, but sales of the company's hot-selling Razr phones left total revenue still nearly half a billion dollars lower than forecast.

Earnings for the July-through-September period were $968 million, or 39 cents a share, down from $1.75 billion, or 69 cents a share, a year earlier.

Excluding certain items, the Schaumburg, Ill.-based company said operating earnings were 34 cents per share, matching the consensus estimate of analysts surveyed by Thomson Financial.

Revenue was $10.6 billion, up 17 percent from $9.05 billion a year ago but well under the consensus estimate of $11.07 billion.

Shares in Motorola closed down 64 cents, or 2.5 percent, at $24.85 on the New York Stock Exchange before the report was released. They touched a six-year high of $26.30 last Friday.