Updated from 12:44 p.m. EDT
Shares of Brightpoint (CELL) were among technology's losers Monday, falling 6.6% after the company posted first-quarter results that fell short of Wall Street estimates.
The cell-phone distributor earned $2.9 million, or 16 cents a share, on sales of $485.6 million. Earnings from continuing operations were $2.6 million, or 14 cents a share. Results included a $3.6 million operating loss in its France operations, a $1.2 million consolidation charge in Australia and expenses of $500,000 related to potential geographic expansion opportunities that will not be consummated. Analysts polled by Thomson First Call were expecting earnings of 21 cents a share on sales of $453.2 million. "We are pleased with the overall results of the company during the first quarter of 2005," the company said. "However, our results in France are unacceptable, and we are committed to completing our evaluation of these operations and taking the appropriate actions needed in order to maximize long-term shareholder value." Shares traded down $1.33 to $18.77.
Glenayre Technologies (GEMS) rose 10.1% after the telecom company said that it would buy Universal Music Group's North American and central European CD and DVD manufacturing and distribution operations for about $122 million. The deal, which is expected to close on May 31, will allow Glenayre to become a major player in the manufacture and distribution of entertainment products, it said. As part of the deal, Glenayre will enter into a 10-year supply agreement, under which it will become the exclusive manufacturer and distributor for about 80% of Universal's CD and DVD requirements in North America and central Europe. Shares traded up 22 cents to $2.39.Shares of Orbotech (ORBK - Get Report) rose 2.5% after the company posted a big jump in first-quarter earnings on sales that were slightly ahead of expectations. The company earned $10.6 million, or 32 cents a share, on sales of $100.5 million. Analysts were expecting earnings of 32 cents a share on sales of $100.2 million. A year ago the company earned $5.1 million, or 15 cents a share, on sales of $67.2 million. Shares traded up 52 cents to $21.02.