Tech Stocks in Motion

Shares of Checkpoint Systems(CKP Quote) were among technology's winners Tuesday, rising 23% after the electronic surveillance products company posted second-quarter earnings that easily topped Wall Street forecasts.

The company earned $9.5 million, or 25 cents a share, on sales of $210.4 million. Excluding items, the company would have earned 36 cents a share. Analysts polled by Thomson First Call were expecting earnings of 25 cents a share. A year ago the company reported a loss of $6.4 million, or 17 cents a share, on sales of $189.3 million. Excluding items, however, the company would have earned 22 cents a share a year ago.

Looking ahead, Checkpoint Systems said that it continues to expect 2005 earnings of $1.15 to $1.25 a share on sales growth in its core operations of 5% to 7%. Analysts are expecting earnings of $1.08 a share on sales of $821.1 million. Shares were trading up $3.95 to $21.46.

Tier Technologies(TIER Quote) fell 11% after the provider of transaction and packaged software cut its third-quarter earnings outlook. The company now expects earnings of 9 cents a share on sales of $49.6 million. Previously, the company expected earnings of 17 cents to 18 cents a share on lower sales of $47 million to $48 million. Analysts are expecting earnings of 18 cents a share on sales of $47.6 million.

The company said earnings were hurt by "several unusual and short-term items including an investment impairment associated with two mutual funds in our investment portfolio, legal expenses partially due to our Delaware reincorporation, and recruitment and severance expenses, among other factors."

Looking ahead, Tier Technologies now expects 2005 earnings of 10 cents to 11 cents a share, down from previous guidance of 28 cents to 30 cents a share. The company reiterated its sales guidance of $147 million to $149 million. Analysts are expecting earnings of 29 cents a share on sales of $149.2 million. Shares were trading down $1 to $8.11.