Tech Stocks in Motion
Shares of PacificNet (PACT) were among technology's losers Monday, falling 14% after the information-technology services company posted disappointing third-quarter results and lowered its full-year outlook.
PacificNet earned $611,000, or 5 cents a share. The company's guidance called for earnings of 6 cents to 9 cents a share. Sales were $10.7 million, below PacificNet's forecast of $11 million to $13 million. During last year's third quarter, the company earned $136,000, or 2 cents a share, on sales of $8.1 million.
PacificNet now sees 2005 earnings of 23 cents to 25 cents a share and sales of $41.6 million to $45 million. The company previously forecast earnings of 25 cents to 38 cents a share and sales of $45 million to $50 million. Shares recently were trading down $1.20 to $7.15.
Brocade Communications (BRCDE) jumped 17% after the storage-area networks company said it completed an internal review into its stock-option accounting. Brocade restated its financial results to account for stock-based compensation expenses during 2002 through 2004. The adjustments were in line with Brocade's projections and reduced reported earnings for the affected years by a total of 9 cents a share. None of the charges affected sales, cash positions, or non-stock-option related operating expenses, the company said. Brocade's audit committee also identified additional stock-based compensation expenses for fiscal years 1999 through 2001. Those charges reduced earnings by 11 cents a share.Finally, the company filed amended annual financial results for the period ended Oct. 30, 2004, and amended its quarterly filing for the quarter that ended Jan. 29. What's more, the company submitted its quarterly financials for April 30 and July 30 of this year. As a result, the company said it is now in compliance with Nasdaq's filing requirements. Brocade said it expects that the "E" appended to its stock symbol to be removed as soon as Nasdaq completes its review of the company's filings. Shares were up 58 cents to $4.08.
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