Tech Stocks in Motion
Shares of Workstream (WSTM) were among technology's losers Friday, falling 52.4% after the company posted third-quarter results that were well below Wall Street expectations.
The software provider posted a loss of $3.6 million, or 8 cents a share, on sales of $6.9 million. Analysts polled by Thomson First Call were expecting a profit of 2 cents a share on sales of $9.6 million.
A year ago, the company posted a loss of $1.8 million, or 7 cents a share, on sales of $4.2 million. Workstream said that an improving unemployment environment hurt its outplacement services business. Shares traded down $2.09 to $1.90.
Extreme Networks (EXTR) fell 11.2% after the company posted third-quarter results that fell below expectations and warned that fourth-quarter sales would fall below expectations.Excluding items, the networking gearmaker earned $743,000, or 1 cent a share, on sales of $91.9 million. Analysts were expecting earnings of 5 cents a share on sales of $102.5 million. Results were hurt by continued weakness in the company's Japanese business and longer-than-expected sales cycles across its businesses. Looking ahead, Extreme forecast fourth-quarter sales of $93 million to $98 million, which is below the $106 million that analysts had been expecting. Shares traded down 56 cents to $4.44. Shares of Merix (MERX) fell 23.2% after the maker of printed circuit boards agreed to acquire Hong Kong-based Eastern Pacific Circuits for about $120 million in cash plus earn-out consideration of up to $8 million, which is tied to 2005 adjusted earnings before interest, taxes, depreciation and amortization. The transaction, which is being financed with a combination of cash and debt, is expected to close in June. In response to the acquisition, Credit Suisse First Boston downgraded Merix to underperform from neutral and lowered its price target on the company. CSFB cut its rating on the stock because of the dilutive nature of the acquisition and because of risks associated with the acquisition. Shares traded down $2.55 to $8.40.
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