8X8 (EGHT - Get Report) tumbled 12% after the company said it plans to sell about 7.1 million shares to two institutional investors for $2.10 a share, resulting in net proceeds of about $14 million. The price represents a 17% discount to Wednesday's closing price of $2.52. The investors also will receive warrants to buy 1.8 million shares at an exercise price of $3 a share. 8X8 plans to use proceeds from the offering to scale its Packet8 VoIP services and subscriber base as well as for general needs. Shares were down 29 cents to $2.23.
Shares of Tier Technologies (TIER) slumped 14% after the software company delayed its fiscal 2005 annual report and previewed fourth-quarter results that disappointed investors. Tier Technologies said it discovered a number of accounting errors while preparing its financial statements for 2005. The errors pertain to accounts receivable relating to a payment processing operation, certain accruals and reserves and certain notes receivable, Tier said. The company expects to restate its financial results for the fiscal years of 2002 through 2004 and for the associated fiscal quarters as needed.
Tier said the delay of its annual report and the restatements could result in a technical default under its revolving credit agreement. The company is seeking a waiver.
When the company reports its results, it expects to post a fourth-quarter loss of 7 cents to 8 cents a share on sales of $34.3 million. Analysts expected a profit of 1 cent a share and sales of $32.5 million for the fourth quarter, which ended Sept. 30. The company blamed the earnings shortfall on increased labor-related costs, adjustments to various reserves and additional Sarbanes-Oxley compliance costs. Shares were down $1.09 to $6.84.Other technology movers included Microsoft (MSFT), down 19 cents to $26.90; Cisco (CSCO - Get Report), up 5 cents to $17.74; Sirius Satellite Radio (SIRI), up 17 cents to $7.17; Intel (INTC), up 6 cents to $26.69; Lucent Technologies (LU), up 4 cents to $2.79; Oracle (ORCL - Get Report), down 13 cents to $12.68; Conexant Systems (CNXT), down 15 cents to $2.38; Sun Microsystems (SUNW), down 2 cents to $4.40; Apple Computer (AAPL), up 3 cents to $72.04; and JDSU (JDSU), down 5 cents to $2.63. Get Jim Cramer's picks for 2006.