Tech Stocks in Motion
Updated from 11:52 a.m. EDT
Shares of InVision Technologies (INVN) were among the worst-performing technology stocks Monday after the company warned Wall Street that an internal investigation into improper payments by distributors in connection with foreign sales could jeopardize its impending acquisition by General Electric (GE).
Late Friday, the bomb detection company said it had informed the Department of Justice and Securities and Exchange Commission about its findings. As a result, the DOJ and SEC may commence an investigation into the matters, including, according to InVision, "possible violations of the Foreign Corrupt Practices Act."
The merger agreement between GE and InVision calls for the acquisition to close by Oct. 31, 2004. However, InVision warned that the internal investigation by the company and any related investigations by the government might not be completed by then. If the acquisition is not completed by Oct. 31, GE and InVision are both entitled to terminate the merger agreement. Shares of InVision Technologies traded down $6.39, or 12.9%, to $43.27.Orbotech (ORBK) rose after the Israeli company reported stronger-than-expected second-quarter earnings and sales. The maker of optical inspection systems earned 26 cents a share on sales of $77.5 million. Analysts polled by Thomson First Call had expected it to earn 20 cents a share on sales of $72 million. A year ago, the company earned 4 cents a share on sales of $54.6 million. Shares of Orbotech traded up $1.20, or 7.1%, to $18.22. Shares of Synopsys (SNPS) fell after the company cut its third-quarter earnings and sales outlook. Excluding items, the software company now expects to earn 31 cents to 34 cents a share, which is short of its previous forecast of 35 cents to 40 cents a share. Analysts had expected it to earn 37 cents a share. Sales, meanwhile, are now expected to be between $279 million and $283 million. Previously, it had expected sales of $300 million to $320 million. Analysts were looking for $310.2 million. The company attributed the weak outlook to lower-than-expected bookings during the quarter. Shares of Synopsys traded down $4.20, or 16.6%, to $21.05.
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